TORONTO — The board of directors of Newmont Mining Corp. has unanimously rejected a hostile takeover offer from Barrick Gold Corp. and countered with a proposal of its own.
The board says the unsolicited, all-stock proposal is not in the best interests of Newmont’s shareholders.
Instead, Newmont, which is in the midst of acquiring Vancouver-based gold miner Goldcorp Inc., is proposing a joint venture with Barrick in Nevada where the companies both have extensive operations.
Barrick would hold a 55 per cent economic interest in the joint venture, while Newmont Goldcorp would hold 45 per cent.
Newmont says its proposal would enable the companies to realize the available synergies while avoiding the risks and complexities associated with Barrick’s unsolicited proposal.
Barrick made an all-stock bid for Newmont last month valued at roughly US$18 billion.
Companies in this story: (TSX:ABX, TSX:G)
The Canadian Press