logo
Plus   Neg
Share
Email

Newmont Mining Plans To Reject Barrick Gold's Hostile Bid

Newmont Mining Corp. (NEM) said that its Board has determined that Barrick Gold Corp.'s (GOLD, ABX.TO) unsolicited, all-stock negative premium proposal to acquire Newmont is not in the best interests of Newmont's shareholders.

Newmont said its board concluded that Barrick's proposal does not constitute, and would not reasonably be expected to constitute, a Newmont Superior Proposal (as such term is defined in the arrangement agreement between Newmont and Goldcorp Inc. (GG,G.TO)).

Newmont noted that its previously announced combination with Goldcorp represents a superior value creation opportunity to generate long-term value through an unmatched portfolio of operations, projects, exploration opportunities, reserves and talent.

To realize the savings from Newmont's and Barrick's Nevada-related operations, Newmont today submitted a joint venture proposal to Barrick. The terms of the proposal are modeled on similar terms to other successful joint ventures, including ones that Barrick has with Newmont and Goldcorp.

Key terms of the joint venture proposal to combine the Nevada-related operations of Newmont Goldcorp and Barrick include: Barrick to hold an economic interest equal to 55 percent and Newmont Goldcorp to hold a 45 percent economic interest. The proposed economic interests are based upon analyst consensus Net Present Values for each company's Nevada-related assets and an equal split of Barrick's estimated Nevada synergies.

Newmont Goldcorp and Barrick will have an equal number of representatives on the Management and Technical Committees. Decisions by the Management Committee shall be determined by majority vote, with the voting power of the parties' representatives based on their respective economic interests, subject to a list of customary material matters requiring joint approval. The proposed joint venture's Operational Management will be jointly appointed by both parties and will be responsible for day-to-day operations.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The German government has approved a 9 billion euros rescue package for Deutsche Lufthansa AG (DLAKF, DLAKY), which is the largest German corporate rescue package since the coronavirus crisis struck. The airline has also agreed to the rescue deal. JetBlue Airways said it will continue to block middle seats in rows where passengers are not traveling together through the July 4 holiday. JetBue will block middle seats on its Airbus aircraft, while it will block aisle seats on its smaller Embraer 190 aircraft. Customers traveling together will be allowed to sit in the middle and aisle seats. The U.S. Food and Drug Administration or FDA announced on its website that New Hoque and Sons, Inc. is recalling Radhuni Curry Powder distributed in New York City, New York due to potential Salmonella contamination. The recall was made after it was found that the finished products contained several strains of Salmonella, the company said.
Follow RTT