Newmont rejects offer by Barrick and instead suggests joint venture
Newmont had raised serious doubts about Barrick’s hostile all-share no-premium bid, from the day it was publicly announced on Febuary 25
Toronto/New York — Newmont Mining rejected Barrick Gold’s $17.8bn unsolicited takeover bid, a deal that would have created the world’s largest gold producer. The board unanimously rejected the proposal, saying it would not be better than Newmont’s previously announced takeover of Goldcorp, the Colorado-based company said in a statement on Monday. Instead, Newmont submitted a joint-venture proposal to Barrick that would encompass the two companies’ Nevada operations. Newmont had raised serious doubts about Toronto-based Barrick’s proposal — a hostile all-share no-premium bid — from the day it was publicly announced on Febuary 25. Newmont said its previously announced agreement to take over Goldcorp offered better benefits, and CEO Gary Goldberg called Barrick’s takeover offer “desperate” and “bizarre”. “The combination with Goldcorp is significantly more accretive to Newmont’s shareholders on all relevant metrics compared to Barrick’s proposal, even when factoring in Barrick’s own sy...
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