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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: goldsheet who wrote (80991)	1/21/2002 9:59:08 PM
From: Secret_Agent_Man	Read Replies (3) \| Respond to of 116764

AngloGold sells Normandy stake to reduce debt BY NIC HOPKINS ANGLOGOLD, the goldmining arm of Anglo American, has sold its US$159 million (£110 million) stake in Australia’s Normandy Mining after a failed takeover bid, but may already be on the trail of more acquisitions in Australia. The company, based in Johannesburg, said yesterday it had sold the 7.1 per cent stake built through its unsuccessful A$4.2 billion (£1.5 billion) bid for Normandy, Australia’s biggest goldmining group. It will use proceeds to cut debt and strengthen its balance sheet. Jonathan Best, AngloGold’s chief financial officer, said: “It was prudent to realise the cash from the minority stake as soon as possible so as to avoid any market risk and to put the funds to work.” The stake was sold via a block trade to UBS Warburg and on the market through Deutsche Bank. AngloGold failed to land Normandy after the rival Newmont, of Colorado, bid slightly more as part of an US$8 billion three-way merger with Canada’s Franco Nevada. The victory makes Newmont the world’s biggest gold- miner. AngloGold will fall to third, behind Canada’s Barrick, which has just completed a US$2 billion takeover of Homestake of the US. However, AngloGold said it continued to look at acquisition opportunities. The company is pushing for a closer relationship with Barrick, and Mr Best recently said that there was some logic in talk of a possible merger between the two companies. There is also speculation that Australia’s next largest goldminer, Newcrest, may now be on AngloGold’s radar. thetimes.co.uk