AngloGold withdraws upped handling fees

In another twist in the battle for Australia’s Normandy Mining (NDY-N), AngloGold has withdrawn plans to up the fees paid to brokers that return acceptances for its Normandy bid.

AngloGold said the decision was made after Newmont Mining (NEM-N) made an application to the Australian Takeovers Panel for a restraining order delaying the fee arrangements, and Normandy’s deferral of its opinion of Anglo’s recently sweetened bid.

The increased fees for brokers were aimed at enticing Normandy’s shareholders to surrender their shares to Anglo’s bid by Dec. 11. The Takeovers Panel said that it believed the increased fees “would be likely to have a coercive effect” on Normandy shareholders. The board feared that shareholders would not have enough time to consider Normandy’s recommendation on Anglo’s new bid.

The said that Anglo’s plan was counter to the intent and policy of the takeovers provisions of Australia’s Corporations Act, but also noted that following discussions, AngloGold agreed to withdraw.

Anglo says its original handling fees will remain unaffected until its offer closes on Dec. 27.