Hostile takeover attempt of Newmont Mining

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On the morning of Feb. 25, news spread of an attempted hostile takeover of Newmont Mining Corporation by Barrick Gold Corporation, which merged with Randgold Resources Ltd Jan. 2. Newmont released a statement acknowledging Barrick’s action. “Newmont confirmed that it has received an acquisition proposal from Barrick Gold Corporation proposing an all-stock merger with Newmont, at a negative premium based on market prices as of the close of business Feb. 22.”

In a conference call from the BMO Capital Markets Global Metal and Mining Conference in Hollywood, Florida, Newmont CEO and director Gary J. Goldberg did not mince words. He said, “We’re well aware of Barrick’s unsolicited, negative premium proposal. Let me be clear, we remain confident in our ability to deliver superior value for our shareholders. Our team has a proven track record of successfully managing and operating a global mining portfolio, delivering total shareholder returns of 65 percent since January 2014 compared with Randgold’s anemic 9 percent and Barrick’s shocking negative 22 percent over that same period. The current Barrick management team has only been together for eight weeks and has never collectively managed to the global portfolio of our scale, complexity or quality. We have delivered, they simply, have not. We have the global mining and management experience, they simply do not.”

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