TORONTO STOCK EXCHANGE
The big story in mining for the period ended March 9 was the US$7.3-billion, all-cash offer for WMC Resources by BHP Billiton. The all-Aussie affair will turn BHP Billiton, already the world’s largest mining company, into a true colossus unparalleled in history.
WMC’s American depositary receipts, which are worth four shares, rose US$1.73, to US$23.75, on the Big Board, below the bid of A$7.85 per share, which translates into US$25.03 per share. WMC’s board has approved the offer, thereby nullifying a previous bid by Europe’s Xstrata, which says it will not exceed its offer of US$6.5 billion.
Gold, the anti-dollar, had a strong day on March 9 after the London fix, shooting up US$5, to US$440 per oz. The move took gold majors with it: Newmont Mining gained US$1.81 to finish at US$45.86; AngloGold Ashanti jumped US$2.93, to US$38.24; Gold Fields tacked on US63, to US$12.50; and Glamis Gold added US67, to US$17.73.
Bucking the trend was Meridian Gold, which slipped US12, to US$18.36. Shares have been on the decline from a 52-week peak of US$25.82 in late February, after the company reported disappointing fourth-quarter net earnings of US$7.5 million, or US8 per share, on gold production of 77,200 oz. at a cash cost of US$56 per oz.
The top percentage gainer was Crested, which shot up 64% to US$1.77 on good volume. In late February, Crested and partner U.S. Energy reported that the 10th Circuit Court of Appeals vacated a judgment of the U.S. District Court of Colorado and remanded their case with energy giant Nukem to an arbitration panel.
Be the first to comment on "BHP bids for WMC"