{"id":596428,"date":"2019-03-05T21:34:46","date_gmt":"2019-03-05T21:34:46","guid":{"rendered":"
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Newmont Mining Corp.\u00a0rejected Barrick Gold Corp.\u2019s $17.8 billion unsolicited takeover bid, a deal that would\u2019ve created the world\u2019s largest gold producer.<\/span><\/span><\/p>\n

The board unanimously rejected the proposal, saying it would not be better than Newmont\u2019s previously announced takeover of Goldcorp Inc., the Colorado-based company said in a\u00a0statement\u00a0Monday. Instead, Newmont submitted a joint venture proposal to Barrick that would encompass the two companies\u2019 Nevada operations.<\/span><\/span><\/p>\n

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Newmont had raised serious doubts about Toronto-based Barrick\u2019s proposal — a hostile all-share no-premium bid — from the day it was publicly announced Feb. 25. Newmont said its previously announced agreement to take over Goldcorp offered better benefits, and Chief Executive Officer Gary Goldberg called Barrick\u2019s takeover offer \u201cdesperate\u201d and \u201cbizarre.\u201d<\/span><\/span><\/p>\n

\u201cThe combination with Goldcorp is significantly more accretive to Newmont\u2019s shareholders on all relevant metrics compared to Barrick\u2019s proposal, even when factoring in Barrick\u2019s own synergy estimates,\u201d Goldberg said in the statement.<\/span><\/span><\/p>\n

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Barrick has no intention of raising its offer, a person familiar with the matter said last week. The top end of the gold industry has been in a state of transformation — in September, industry leader Barrick agreed to buy Randgold Resources Ltd. for $5.4 billion. Three months later, Newmont announced its\u00a0plan<\/span>\u00a0to purchase Goldcorp Inc. for $10 billion, which would leapfrog it into the leading gold-producer spot.<\/span><\/span><\/p>\n

\u2018Better Job\u2019<\/span><\/span><\/p>\n

Newmont\u2019s shares rose 1.3 percent to $33.39 at 7:49 a.m., before the start of regular trading in New York. Barrick was little changed. A spokeswoman for Barrick had no immediate comment on the rejection.<\/span><\/span><\/p>\n

\u201cSince previous merger discussions terminated in 2014, Newmont has significantly outperformed Barrick on almost every metric,\u201d Goldberg said in a letter Monday to Bristow and Barrick Executive Chairman John Thornton. \u201cOur management team has a consistent, long-standing track record of delivering superior execution,\u201d he wrote. \u201cIn contrast, Barrick\u2019s underperformance highlights its ineffective operating model, poor record on delivering stockholder returns, and significant jurisdictional risk.\u201d<\/span><\/span><\/span><\/p>\n

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\u201cMark has never run a global portfolio,\u201d Goldberg said in a Feb. 25 interview, referring to Barrick CEO Mark Bristow, who until Jan. 1 ran Africa-focused Randgold. \u201cIn fact, I\u2019d say none of his team have run a global portfolio like what we have in place.\u201d<\/span><\/span><\/p>\n

On the same day, Bristow said his team could do a better job running his rival.<\/span><\/span><\/p>\n

\u201cI have spent a lot of time in Nevada, and I have no doubt that I can do a better job than Newmont,\u201d Bristow said in aninterview\u00a0with Bloomberg Television.<\/span><\/span><\/p>\n

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