<Newmont lifts bid in gold mine battle
By Carolyn Batt (Filed: 04/01/2002)
NEWMONT Mining yesterday tried a knock-out blow in the
battle for Normandy Mining, boosting its bid for the
Australian gold miner by a further 10 Australian cents a
share.
The revised A$4.3 billion (£1.54 billion) bid gives
Newmont a 12-cent lead over rival bidder Anglogold,
leaving it poised to become the biggest gold producer.
At A$1.93 a share, the latest offer exceeds the
A$1.48-$1.88 valuation range indicated by independent
expert Grant Samuel, and was immediately
recommended by the Normandy board.
Meanwhile AngloGold appeared to step back from the
battle, in which the two rivals have each tabled three
offers since September. Chairman Bobby Godsell
admitted the South African group could see "no basis on
which it could justify an increase in its offer", worth about
A$1.81 a share.
Much depends on the share price movements of Newmont
and AngloGold over the next few days, with both offers
including a significant scrip element. Newmont stock may
come under pressure as the market considers the extra
A$223m cash the group has promised. If the valuation
gap narrows to a few cents, Normandy shareholders may
prefer AngloGold's unconditional over Newmont's
conditional offer.
Newmont chairman Wayne Murdy insisted the Newmont
offer was "clearly superior", and knocked AngloGold's
proposed alliance with Canada's Barrick, which could
entail sharing ownership of the Super Pit mine in Western
Australia.
He said: "We intend to be leader in the rationalisation of
various property interests over time for the benefit of our
shareholders. However, unlike AngloGold, we will be
disciplined in this process and will not be required to
confront the disposition of important assets.">
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