South Africa's Gold Fields is taking its $38 billion bid for Northern Star Resources directly to Australian institutional investors, after Northern Star rejected it as “highly opportunistic.” The initial offer was 0.3125 new Gold Fields shares and $7.25 in cash per Northern Star share, a 22 per cent premium at the time, but Northern Star's shares are now more than 10 per cent higher than before the approach leaked, putting the offer at a discount to market. If the deal succeeds, the combined group would be the world's second-largest gold producer, producing 4.1 million ounces a year and controlling eight of Australia's 20 biggest gold mines. Gold Fields chief executive Mike Fraser wants the board to agree to the tie-up's strategic logic and open its books for due diligence, while chairman Michael Chaney says the proposal does not reflect the company's long-term value. Elliott Investment Management, which holds a 6 per cent stake, is also pressing Northern Star for sweeping changes.
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Original headline: Northern Star Resources takeover : Gold Fields pushes $38 billion merger plan to institutional shareholders
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- Northern Star Resources takeover : Gold Fields pushes $38 billion merger plan to institutional shareholders
South Africa-based Gold Fields is taking its $38 billion takeover pursuit of Northern Star Resources directly to Australian institutional investors, hoping they will pressure the board into negotiations after it rejected the offer as “highly opportunistic”. If the deal succeeds, the combined group would be the world's second-biggest gold producer, controlling eight of Australia's 20 biggest gold mines and producing 4.1 million ounces a year. The initial offer was 0.3125 Gold Fields shares plus $7.25 in cash for each Northern Star share, valuing the company at $38.7 billion with a 22 per cent premium. Chairman Michael Chaney says the bid is now below Northern Star's share price, which is more than 10 per cent higher than the day before news of the approach leaked. Activist investor Elliott Investment Management, which holds a 6 per cent stake, is one of the top shareholders Gold Fields is trying to win over.
- Northern Star Resources takeover : Gold Fields pushes $38 billion merger plan to institutional shareholders
Gold Fields, a South African miner, is taking its $38 billion pursuit of Northern Star Resources to local institutional investors after Northern Star's board rejected it as 'highly opportunistic'. CEO Mike Fraser argues the combination would create the world's second-biggest gold producer, making 4.1 million ounces a year and controlling eight of Australia's 20 biggest gold mines. The initial offer of 0.3125 new Gold Fields shares plus $7.25 cash per Northern Star share valued the company at $38.7 billion, a 22 per cent premium, but chairman Michael Chaney said it did not reflect the company's value and now sits below its share price. Activist fund Elliott Investment Management, which holds a 6 per cent stake, is among the shareholders Gold Fields is courting.
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