Gold miner Gold Fields on Monday said it has rejected a takeover bid by world number-six gold miner Harmony to create the world’s leading gold mining group, saying it is not in its interests.
Gold Fields CEO Ian Cockerill “will be advising the Gold Fields board to reject the Harmony offer”, company official Andrew Davidson said.
“This offer is not in the interest of Gold Fields shareholders, its employees or South Africa in general,” Davidson said.
“Harmony’s true agenda has not been revealed. It’s long on spin, factually inaccurate and grossly inadequate in terms of value.”
Harmony said it is offering a 29% premium for Gold Fields on the basis of 1,275 new Harmony shares for each Gold Fields share and 1,275 new Harmony American depositary shares (ADS) for each Gold Fields ADS.
These terms valued Gold Fields at $8,1-billion.
“This transaction represents tremendous opportunities for stakeholders of both companies,” said Bernard Swanepoel, South Africa-based Harmony’s chief executive, in a statement.
Harmony said the offer has received the full backing of Russia’s Norilsk Nickel, which owns 20% of Gold Fields.
Gold Fields, however, said the offer “is only in the interest of Norilsk and Harmony”.
Based in Johannesburg, Gold Fields employs 48Â 000 people across its operations in South Africa, Ghana, Australia and Finland.
Meanwhile, South African trade unions have expressed fears that the proposed takeover could lead to sweeping job cuts.
But Swanepoel would not be drawn into how many jobs could be on the line, telling a news conference: “There obviously will be some reductions … We have a very good track record as job savers and not job destroyers.”
The finalisation of the offer is subject to approval by the authorities at Gold Fields and the cancellation of a merger deal between that company and Canadian firm Iamgold concerning assets of Gold Fields held outside South Africa. — Sapa-AFP
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