Barrick Gold‘s (ABX-T, ABX-N) recently extended offer for rival gold miner Placer Dome (PDG-T, PDG-N) has been granted antitrust or similar regulatory approvals in Canada, the United States, Germany, Switzerland, and Australia.
The world’s third-largest gold producer said it expects to soon win similar approval in South Africa, which would eliminate the final regulatory hurdle in front of its hostile US$9.2-billion bid.
Barrick also said it has waived the bid provision that it be granted access to Placer’s data room citing that all relevant material is already publicly available. “Data room access will not be of any material benefit to Barrick in connection with the completion of its offer,” concluded Barrick in a prepared statement.
Barrick plans to send out an amended offer to Placer’s shareholders as soon as possible. Barrick’s offer was recently extended by four weeks to Jan. 16, after Placer agreed to drop its shareholders rights plan, which is aimed at thwarting hostile bids by allowing existing shareholders, other than bidders, to buy additional shares at deeply discounted prices.
Said Barrick president and CEO Greg Wilkins: “We are pleased that we have received the required regulatory approvals in various jurisdictions around the world. With regulatory clearances in hand, and the removal of the Placer Dome poison pill, Placer Dome shareholders will very soon be in a position to have their shares purchased under our offer.”
Barrick is offering US$20.50 for each Placer Dome share, with about 87% of the compensation comprising scrip and the balance cash. Placer has advised shareholders to reject the offer. A large portion of the cash consideration come via a side deal with Goldcorp (G-T, GG-N), which has agreed to buy Placer’s major Canadian assets for $1.35 billion.
Shares in Placer were 11 better at $25.46 in afternoon trading in late Toronto following the news on Dec. 15; Barrick was up 22 at 31.09. Placer was off a dime at $21.98 at the same time in New York while Barrick was unchanged at 26.84.
Be the first to comment on "Barrick balks at Placer’s books"