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Gold/Mining/Energy : Medinah Mining Inc. (MDHM) -- Ignore unavailable to you. Want to Upgrade?

To: zenin who wrote (18846)	10/11/1999 2:03:00 AM
From: CIMA	Respond to of 25548

Top Financial News Mon, 11 Oct 1999, 2:00am EDT AngloGold Makes US$541 Mln Takeover Bid for Australia's Acacia Resources By Karen Peebles AngloGold Makes A$832 Mln Bid for Australia's Acacia (Update1) (Adds comment and rewrites from 1st paragraph.) Melbourne, Oct. 11 (Bloomberg) -- AngloGold Ltd., the world's largest gold miner, made a A$832 million (US$541 million) bid for Australia's Acacia Resources Ltd. -- its first move into Australia, the world's third largest gold producing nation. South Africa-based AngloGold has offered 3.5 of its shares for every 100 Acacia shares valuing the Acacia shares at A$3.30 each, a premium of 24 percent compared with Friday's closing price of A$2.66 a share. Acacia shares were recently trading up 34 cents, or 12.8 percent, at A$3.00. ''The South Africans at least have woken up and seen that Australian gold stocks give very good value compared to North American stocks, they have low production costs and infrastructure is great,'' said Keith Goode, gold analyst at Bell Securities Ltd. The offer is 46 percent higher than a hostile bid for Acacia, Australia's fifth-largest gold miner, by rival Australian gold producer Delta Gold NL. Delta bid A$570 million in a one-for- one offer in September in a move that would have created the country's No. 2 gold producer. Acacia's board has advised it intends to recommend AngloGold's offer be accepted in the absence of a higher offer. Analysts say the move may herald a new round of takeovers as companies move to buy before gold prices rise further and gold stocks become too expensive. Gold for immediate delivery has risen as much as 33 percent from US$255.30 an ounce on Sept. 20 to an intraday high of US$340.50 reached last week. The rally came after 15 European banks announced they would limit sales and lending of gold from their reserves in a bid to halt the three-year decline in gold. Gold was recently trading in Asia at US$319.50. Global Player AngloGold said its move to buy Acacia is ''to combine quality African, U.S. and South American gold production with quality Australian production creating a global player well positioned to play a leading role in the new millennium.'' The purchase would add an extra 500,000 ounces of gold a year to AngloGold's 7 million ounce annual production. AngloGold has 14 operations in South Africa, one each in Namibia and Mali, two in the U.S., two in Brazil and one in Argentina. Acacia has four operations producing more than 500,000 ounces a year including the low-cost Sunrise Dam mine in Western Australia state. Acacia also has a one-third interest in what is Australia's largest untapped gold deposit, the Wandoo deposit also in Western Australia, which has an estimated 15.3 million ounces.