Newmont Mining Swings to Profit on Steady Gold and Copper Production

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Newmont Mining Reject Barrick Gold’s ‘negative premium’ hostile buyout bid

Newmont Mining Corp. NEM said Monday its board of directors have unanimously rejected Barrick Gold Corp.’s GOLD hostile buyout bid, saying the “all-stock negative premium proposal” posed “significant risks” to its shareholders.

Newmont shares fell 0.7% in premarket trade and Barrick’s stock dropped 1.0%.

Newmont said it determined that the previously announced $10 billion deal to buy Goldcorp Inc. GG, +0.09% represented a “superior value creation opportunity.”

The Barrick unsolicited proposal to buy Newmont valued Newmont at nearly $18 billion, while the terms of the bid valued Newmont shares at an 8.2% discount.

“Our thorough review of Barrick’s unsolicited proposal and its associated risks has reaffirmed our conclusion that the combination of Newmont and Goldcorp represents the best opportunity to create value for Newmont’s shareholders and deliver industry-leading returns for decades to come,” said Newmont Chief Executive Gary Goldberg.

Over the past 12 months, shares of Newmont dropped 10.8%, Barrick rose 6.7%, the VanEck Vectors Gold Miners ETF GDX, -2.43% gained 1.0% and the S&P 500 SPX, +0.69% tacked on 4.2%.