Normandy urges shareholders to do nothing


Normandy chief Robert de Crespigny has told his shareholders to sit tight and await "further developments"

SYDNEY, Australia (CNN) -- The directors of Australian takeover target Normandy Mining told shareholders Monday to do nothing and await "further developments".

The announcement came after the Normandy board met to consider a revised offer by South Africa's AngloGold Ltd, made last Thursday.

AngloGold is in a bidding war with U.S-based Newmont Mining for Normandy, which is Australia's biggest gold producer.

Normandy's recommendation to shareholders suggests it expects Newmont to come back with a higher offer. After AngloGold upped its bid to close to $2 billion, Newmont said it would respond "in due course".

Normandy shares closed 1.88 percent higher at A$1.63 after Monday afternoon's announcement.

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AngloGold's original all-stock offer on September 5 was worth about $1.7 billion (Aust. $3.2 billion), and valued Normandy at A$1.42 a share.

AngloGold said last Thursday it was adding Aust. 20 cents per Normandy share to its initial offer, increasing its value by 16 percent and putting it ahead of the rival bid from Newmont.

On November 14, Newmont made a stock-based bid of about $1.98 billion for Normandy, as part of a $4.4 billion stock and cash package that included a takeover of Toronto-based Franco Nevada Mining.

Franco Nevada is the largest shareholder in Normandy with a 19.9 percent stake.

The Normandy board, which originally recommended the higher Newmont offer, said that given the interest from two bidders, it would be premature to make a recommendation on whether shareholders should accept the revised AngloGold bid.

As stock prices have moved in recent weeks, the value differential has swung to AngloGold's favor and its bid is now about 6 percent above Newmont's.

Normandy directors said Monday they would "continue to monitor the situation" and would anticipate responding no later than two weeks before the scheduled December 27 close of AngloGold's offer.