News about Northern Star Resources

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.