Miner conflict heats up a degree
Rival offers: Bitter AngloGold loads for another shot at Normandy
Drew Hasselback -- Financial Post, with files from news services
Australian regulators have allowed Normandy Mining Ltd. to reject AngloGold Ltd.'s hostile takeover bid, but the South African company has promised further legal action to block a rival offer from Newmont Mining Corp.
"This technical bun fight will continue until AngloGold decides to walk away, to say that its offer is good enough, or to add a cash component," said Allan Cooke, an analyst with Rice Rinaldi Securities in Johannesburg.
AngloGold of Johannesburg and Newmont of Denver are fighting for control of Normandy, Australia's largest gold producer.
The battle has massive implications for Canada. Normandy is 19.9% owned by Franco-Nevada Mining Corp. of Toronto.
Newmont is hoping to buy Franco-Nevada and Normandy through friendly takeovers, then fold them into what would become the world's largest gold producer.
AngloGold was bitter about Normandy's negative reaction to its bid.
Last week it successfully asked the Australian Takeovers Panel to ban Normandy, at least temporarily, from mailing out a letter that recommended that shareholders reject AngloGold's bid.
But the Australian regulator yesterday revoked its temporary ban.
It completed a review of the matter and rejected AngloGold's complaint that Normandy's letter was "misleading."
AngloGold is not walking away. It said it will bring to the panel a new complaint that alleges Newmont's offer violates Australian law.
"AngloGold considers that Newmont's offer is a high-risk proposition for Normandy shareholders," said Jonathan Best, AngloGold's financial director.
"We consider that the comparative analysis which Newmont has presented in selling its offer and its characterization of AngloGold are misleading in a number of ways."
AngloGold also said it may challenge Newmont's bid before Canadian regulators.
AngloGold announced a A$3.2-billion all-stock offer for Normandy on Sept. 5.
Newmont trumped AngloGold on Nov. 14 with a cash and stock offer then valued at A$3.8-billion.
A drop in Newmont's share price now values its at about A$3.2-billion.
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