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Gold/Mining/Energy : Golden Eagle Int. (MYNG) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Bishop who wrote (29803)	11/11/2002 8:58:08 AM
From: GC	Read Replies (1) \| Respond to of 34075

Rumors on the gold front , they want to get bigger lol globeandmail.com POSTED AT 7:30 AM EST Friday, November 8 Merger talk engulfs Placer By JACQUIE McNISH and WENDY STUECK From Friday's Globe and Mail Toronto and Vancouver — Placer Dome Inc. shares have been caught up in a torrent of trading as major mining players mull possible takeover scenarios. Industry sources said a number of foreign and domestic mining companies have privately expressed interest in acquiring some of Vancouver-based Placer's far-flung international gold mining assets in recent months, but no suitor has shown interest in bidding for the entire company. Placer is the world's fifth-largest gold producer with 14 mines in countries such as South Africa, Papua New Guinea, Canada, the United States and Chile. The stock -- which has been on a tear since mid-October -- has been trading at unusually heavy volumes this week, with nearly 20 million shares changing hands over the past two days. Sources familiar with some potential suitors said a number of proposals are being floated to resolve concerns about Placer's asset mix. For example, these sources said, one tentative proposal calls for a syndicate of buyers to launch a bid. If such a bid were successful, syndicate members would divide Placer's various assets among themselves. Suitors that have been approached about joining the syndicate, sources said, include Denver-based Newmont Mining Corp., Toronto-based Barrick Gold Corp. and some unidentified pension funds and financial investors. Markets were rife with rumours yesterday that London-based AngloGold Ltd. might soon mount a bid on its own or as a joint bid with another mining company. But one source familiar with the company said Placer's South Deep gold mine in South Africa was unattractive to AngloGold because it is seeking to lower its exposure to the politically unstable region. "Everyone wants certain assets at Placer, but not all the assets," said one person familiar with some of the suitors. "There have been some very in-depth conversations about how to resolve this issue." Placer spokeswoman Brenda Radies said the company does not comment on rumours and added that the company's stock could be rising for reasons that have nothing to do with a potential takeover. For example, she said, Placer recently won its lengthy battle for control of Australia-based AurionGold Ltd. A Toronto spokesman for Barrick said the company does not comment on market rumours. Representatives for Newmont and AngloGold could not be reached for comment. One industry source said Barrick has privately expressed interest in Placer's Nevada gold mines over the past year. But another source familiar with Barrick said it "is not interested" in a bid for Placer. Newmont is widely regarded as a leading suitor because it is attracted to Placer Dome's gold mines in Australia, a region in which it is seeking to expand. In a research report issued Wednesday by Scotia Capital Inc. analyst David Mallalieu, he concluded that there was a greater likelihood of Newmont launching a bid than AngloGold. Mr. Mallalieu's report said an initial bid for Placer would likely offer about $20 a share or higher. Such a bid, he said, "would have to take into consideration that there might be a counteroffer from a company that could afford to increase the ante." Placer Dome's share price has been steadily climbing in the past three weeks and in the past two days the company saw an extraordinary leap in trading activity. Yesterday, nearly 12 million Placer shares traded hands on the Toronto Stock Exchange and on Wednesday nearly eight million shares were traded. On an average day 3.8 million Placer shares are traded on the TSX. The company's stock has risen from a recent low of $12.85 a share on October 18 to $16.08 at yesterday's close. The stock price eased slightly yesterday by 25 cents. Some analysts said that as Placer's stock price moves higher, its appeal as a takeover candidate could diminish. Although Placer has been seen as a potential takeover target for much of the past year, industry sources said speculation heated up earlier this fall when a Toronto investor sold a large stake in the company. Market sources said Goldcorp Inc. sold a stake in Placer some time this fall and since then either one or a number of large investors has steadily accumulated a stake in the mining company. A spokesman for Goldcorp was not available yesterday. In its third-quarter statement the company said it realized a $2-million profit by selling its shares in what it described as "a potential takeover target." But, the company said, "upon further analysis, this holding was sold."