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3/4/2019, 2:47 PM (Source: TeleTrader)
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Newmont rejects Barrick offer, proposes Nevada JV

Newmont Mining Corp's board of directors unanimously rejected gold mining giant Barrick Gold Corp's "unsolicited" $18 billion offer on Monday, the former announced in a press release.

According to Newmont, the "unsolicited, all-stock negative premium proposal" was not in the best interests of its shareholders and did not constitute a Newmont Superior Proposal as defined in its agreement with GoldCorp Inc. As the provisions of that agreement bar it from undertaking arrangements that are not such proposals, Newmont said that it could not engage with Barrick in relation to its proposal. However, the company also stated that it submitted a joint venture proposal to Barrick for their Nevada operations, which was similar to previous joint ventures between the two as well as Goldcorp.

Barrick previously launched an all-share bid for Newmont, which would have given the former a majority stake in the merged company. Newmont themselves agreed a deal to acquire Goldcorp for $12.5 billion in January, which is scheduled to be completed by the middle of this year.

Breaking the News / DZ