Newmont doubles AngloGold’s cash

Newmont Mining (NEM-N) jumped back into the lead in the intensifying battle for Normandy Mining (NDY-T) on Monday by bumping its offer for the Australian miner by A40 per share.

Including the previously offered 0.0385 share of Newmont for one share of Normandy, the sweetened offer amounts to A$1.90 per share, based on Newmont’s closing price of US$20.02 on the New York Stock Exchange on Friday. The cash sweetener is not contingent upon 90% acceptance.

By midday on Monday, Newmont shares were off about 5% at US$19.07, dropping the Newmont bid to about A$1.82 per share. In contrast, AngloGold (AU-N) shares were on the rise, up about 2.6% to $17.74. Anglo’s offer stands at about A$1.65 per share, including A20 cash and 2.15 Anglo shares per Normandy share.

The share portion of AngloGold’s offer is free of conditions; the A20 cash consideration is subject to shareholder approval, which will be sought at a Dec. 19, 2001, meeting. Anglo American (AAUK-Q), which owns 53% of AngloGold will vote in favour of the cash payment.

Newmont’s proposed offer remains subject to at least 50.1% of Normandy’s shareholders tendering their shares. The offer is also subject to Newmont shareholder and regulatory approval. Newmont plans to lodge its bidder’s statement within a week and dispatch its offer as soon as possible. Newmont intends to complete its bid by mid-February, 2002. Under its plan, Newmont would also acquire Franco-Nevada Mining (FN-T) creating the World’s largest gold producer.

Newmont’s CEO Wayne Murdy calls his company’s new offer, “clearly superior to AngloGold’s revised offer, and we are committed to completing our transaction by early in the new year.”

Normandy’s CEO Robert J. Champion de Crespigny said, “We are pleased that Newmont has increased its offer for Normandy. The immediate value offered by Newmont is superior to that offered by AngloGold and at the top of the value range established in an independent valuation by Grant Samuel and Associates”

All of Normandy’s directors currently intend to accept the revised Newmont offer, and, subject to their fiduciary duties, will recommend the Newmont’s offer to shareholders, and reject AngloGold’s revised offer.

In a prepared statement, AngloGold maintains that Newmont’s new bid is, “complex, highly conditional and a high-risk proposition for Normandy shareholders.” The South African company said it believes that its own offer gives Normandy shareholders sustainable high dividends and the possibility of share price growth.