ConsGold, as it is called, holds a 49.7% interest in Newmont, an enormous, 900,000-oz-per-year gold producer. ConsGold also has gold mining interests in South Africa and industrial mineral interests in the U.S. and U.K.
Hanson is an acquisitive British industrial with the reputation of buying money-losing companies, injecting them with new capital and managerial expertise to increase their value. It is not known what Hanson plans to do with the ConsGold assets, although financial newspapers the day after the deal was closed quoted some analysts as saying Hanson does not consider Newmont a core holding.
If an asset sale is in the works, American Barrick Resources (TSE) might try to pick up Newmont. Barrick’s chief financial officer, Jerry Garbutt, told The Northern Miner last May that his company was eyeing Newmont.
At the time, Minerals and Resources Corp. (Minorco) was bidding for ConsGold. However, a U.S. court injunction halted the takeover bid.
But now that the Hanson merger has been completed, Greg Wilkins, American Barricks’ senior vice- president finance, said that his company’s position hasn’t changed. “If the opportunity arises (to bid for Newmont), we’ll take a good, hard look at it,” he said. “It’s clear by accounts in the newspapers that Newmont will be up for sale.”
Barrick has about $200 million cash in a war chest and will receive $70 million when it submits its ConsGold shares under the terms of the merger. Barrick acquired the shares in 1986. Each share is worth $24.17 under Hanson’s takeover offer.
Wilkins expects that Minorco will be back in the running to acquire Newmont, if Hanson does deal off the U.S. gold producer.
]]>
Be the first to comment on "Goldfields, Hanson merger may spark battle for Newmont"