/ 31 January 2005

Gold Fields still fights Harmony takeover

Gold Fields will continue to oppose Harmony’s hostile offer, the mining company said on Monday.

Gold Fields chief executive Ian Cockerill said there was no deal between the two companies.

”This deal is far from over, not only has the fat lady not sung, she is nowhere near sight,” he said at the release of the company’s December 2004 quarterly results in Johannesburg.

Gold Fields has been resisting smaller company Harmony’s takeover bid for the mining giant since it was first announced in October last year.

Gold Fields requested certain information from Harmony at a meeting in Moscow in December. It told Harmony if there is to be any form of negotiated settlement, it has to see this information, which Harmony has to date not supplied.

”They have not shown us any willingness to give us information [to make a proposal] we can give to shareholders. If these guys were serious … they would give the information,” Cockerill said.

On rumours that Harmony is poised to increase the value of its offer for Gold Fields, he said his company has heard from sources that a higher offer is being mooted, but Gold Fields has not been approached directly.

Cockerill would not comment when asked if Gold Fields has been in legal discussions with Norilsk Nickel of Russia, the company’s largest shareholder, on Harmony’s decision last week to cancel an application to extend the conditions in its offer.

He said this move is an indication that Harmony will not win the takeover bid, which seeks to create the biggest gold-mining company in the world.

Gold Fields announced a December 2004 quarterly operating profit of R637-million, up 40% from R456-million in the September 2004 quarter.

Net earnings — excluding gains and losses on financial instruments and foreign debt net of cash and exceptional items — amounted to R101-million.

The group’s attributable gold production increased by 4% to 1 048 000 ounces. — Sapa