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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: SliderOnTheBlack who wrote (94995)1/3/2002 6:21:17 AM
From: Bocor  Read Replies (1) of 95453
 
Any thoughts?

Newmont Raises Normandy Bid, Wins Board Backing

MELBOURNE (Dow Jones)--U.S.-based Newmont Mining Corp. (NEM) Thursday
increased by 10 Australian cents a share its takeover bid for Normandy Mining
Ltd. (A.NDY), Australia's largest gold miner.

Newmont's revised share-and-cash bid values Normandy at A$1.93 a share, or
A$4.3 billion, and eclipses a rival share-and-cash bid from South Africa's
AngloGold Ltd. (AU) that values Normandy at A$1.81, having been similarly
increased by 10 cents just a week ago.

Newmont's bid, which is recommended by the Normandy board, appears to be a
knock out blow given AngloGold was only able to raise its bid on the basis of
expected cost savings from a proposed cooperative agreement with Canadian gold
major Barrick Gold Corp. (ABX).

AngloGold is unlikely to now raise its offer but it will be hoping that
Newmont shares fall later Thursday in response to the higher bid, eroding some
of the 12 cent premium Newmont is offering and making its own offer more
competitive. AngloGold's offer closes Jan. 11 while Newmont's offer closes Feb.

15.

However, Newmont is back in the box seat and if successful will be able to
move forward with consummating its three way merger plan with Normandy and
Canada's Franco-Nevada Mining Corp. (T.FN), creating the world's largest gold
producer.

Failure for AngloGold will leave the South African company still seeking to
diversify away from its politically risky home base in search of an upward
re-rating of its shares. Failure could also leave it vulnerable to takeover
itself with Barrick being tipped as an obvious merger partner.

"Considering the values of the two bids, as well as other factors such as
trading liquidity and the long term potential and value creation associated
with Newmont and AngloGold...the revised Newmont bid continues to be superior
to the offer by AngloGold and has the full support of Normandy's board,"
Normandy's executive chairman Robert Champion de Crespigny said in a statement.
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