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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: nickel61 who wrote (2461)	5/2/2002 10:36:37 AM
From: nickel61	Read Replies (2) \| Respond to of 3558

Barrick Gold's plan to acquire AngloGold. "Midas" fits this in with AngloGold CEO Bobby Godsell's promoting the gold price's prospects even as AngloGold was beginning to close its hedges. Ordinarily AngloGold might be expected NOT to talk up the gold price while the company was trying to buy back gold and buy back its promises to sell gold. AngloGold's talking up the gold price when the company was trying to buy might seem as strange as the Bank of England's warning the world about its gold sales and thereby driving the price down, and, with the price, the bank's own receipts. Of course the Bank of England's behavior made sense if the bank actually wanted a lower gold price for surreptitious political reasons. And AngloGold's announcing its plans to reduce its hedging, driving up the cost of its own plans, may make sense too, as Murphy writes -- in the context of AngloGold's fending off acquisition by the super-hedged Barrick, for whom a higher gold price is death.