Franco-Nevada (FN - TSE) - zero debt, cash rich royalty co. Message Board

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Gold/Mining/Energy : Franco-Nevada (FN - TSE) - zero debt, cash rich royalty co.

FN 438.00

-1.3%

Oct 30 5:00 PM EST

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To: Traveling Man who wrote (471)	11/26/2001 2:01:39 AM
From: Jim Bishop	Read Replies (1) of 511

AngloGold to challenge Newmont bid By James Regan SYDNEY, Nov 25 (Reuters) - AngloGold Ltd <ANGJ.J> said on Monday it will initiate action at the Australian Takeovers Panel to challenge aspects of a counter offer for Normandy Mining Ltd <NDY.AX> launched by Newmont Mining Corp <NEM.N> earlier this month. U.S.-based Newmont topped AngloGold's takeover offer for Australia's largest gold mining house. "AngloGold considers that Newmont's offer is a high risk proposition for Normandy shareholders," AngloGold's chief financial officer Jonathan Best said in a statement. Parts of the Newmont offer "contravened fundamental aspects" of Australian takeover law and policy, Best said. The Takeovers Panel, established last year to replace court hearings over some corporate matters, has the power to block takeovers. It takes on average 14 to 16 days to hand down a decision, the panel's director of corporations and securities panel Nigel Morris told Reuters. Newmont's scrip bid for Normandy was initially valued at A$3.8 billion, topping a A$3.2 billion scrip offer by AngloGold. Newmont is also offering another US$2.58 billion in shares to buy Canada's Franco-Nevada Mining Corp Ltd <FN.TO>, which owns 19.9 percent of Normandy. Based on the latest share prices, Newmont's bid is worth A$3.31 billion, or A$1.48 a share, while the AngloGold offer is worth A$3.17 billion, or A$1.42 a share. Normandy has recommended its shareholders accept the Newmont offer. The winning offer would lead to formation of the world's biggest mining house. AngloGold is currently number one and Newmont number two. Shares in Normandy closed a cent lower at A$1.54 in a stronger overall market. AngloGold asserted that the merger proposal with Franco-Nevada, a Toronto-based gold royalty company, was pitched at a significant premium to Franco-Nevada's shares and underlying value of its assets. AngloGold said it will ask the Takeovers Panel to set aside an option agreement between Newmont and Franco-Nevada over 19.9 percent of Normandy's shares. It is also asking that a condition be removed requiring Newmont to obtain 50.1 percent of Normandy and for the acquisition of Franco-Nevada to be completed before dispatching Newmont's offer for Normandy. ((Sydney newsroom 61-2 9-373-1800 jim.regan@reuters.com)) REUTERS * end of story *

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