Offerings would reduce holdings of Hanson in Newmont Mining

The major shareholder of Newmont Mining (NYSE) plans to reduce its holdings in the giant mining corporation. English firm Hanson, which through an affiliate owns 49% of Newmont, would lower its interest to about 26% through two related offerings.

Newmont says it has filed a registration statement with the Securities and Exchange Commission in Washington, D.C., for a proposed public offering of 3.6 million common shares together with warrants to purchase an additional 1.8 million shares.

The registration statement covers a secondary offering by the Hanson affiliate of 8.4 million common shares of Newmont, and warrants to purchase 4.2 million shares.

Share prices are not specified for either offering. Assuming full exercise of the warrants, the offerings would reduce Hanson’s ownership in Newmont to about 26%. Newmont had 67.6 million shares outstanding as of June 30.

Newmont Mining owns 90.1% of huge gold producer Newmont Gold (NYSE).

Newmont Mining also reports it has adopted a shareholder rights plan, or “poison pill,” designed to deter coercive or unfair takeovers.

Under the rights plan, preferred stock purchase rights have been declared as a dividend at the rate of one right for each common share held as of Sept. 11.

Each right will entitle the holder to one-five hundredth of a share of “series A junior participating preferred stock” of Newmont at an exercise price of US$150. Each preferred share fraction is designed to be equivalent in voting and dividend rights to one share of common stock.

The rights will be exercisable and will trade separately from the common stock only if a person or group, other than the Hanson interests that currently own Newmont stock, should acquire beneficial ownership of 15% of the company’s common stock or begin a tender or exchange offer that would result in such a person or group owning 15% or more of the common stock.

Should an offer considered hostile result in the acquisition of an interest 15% or greater, shareholders will be able to exercise the rights and buy Newmont stock having twice the value of the exercise price of the rights.