South African gold-mining group Harmony has called on rival Gold Fields to avoid a battle that will only enrich lawyers and reconsider a merger bid that will create the world’s largest gold-mining group.
The appeal was made by Harmony CEO Barnard Swanepoel in an open letter to his Gold Fields counterpart, Ian Cockerill.
“A battle enriching lawyers, disenfranchising shareholders, distressing employees and focusing on the negative is both unproductive and undesirable for all affected,” Swanepoel said.
“I write to call on your stated commitment to shareholders, the mining industry and the economy of South Africa and suggest we work together to find a more friendly resolution to the current situation,” he added.
Gold Fields, which is planning a merger with Canada’s Iamgold, has approached both the competition authorities and the High Court in an attempt to stave off what it considers to be a hostile takeover bid by rival Harmony.
Gold Fields regards the bid as unlawful and unsolicited.
However, Harmony claims Gold Fields’ legal actions are disadvantaging its shareholders.
“Since Harmony announced its proposed merger with Gold Fields, it has become clear who comes first in the eyes of the Gold Fields board: its lawyers, not its shareholders,” Harmony asserted on Monday, as the war of words hotted up between the two rival companies.
“Quite simply, the Gold Fields board is conducting a campaign to disenfranchise its shareholders,” Harmony charged. — I-Net Bridge
Harmony: ‘Let’s do it our way’