AngloGold extends Normandy bid


Normandy chief Robert de Crespigny and his board have recommended that shareholders accept the Newmont offer.

By CNN's Geoff Hiscock
Asia business editor

SYDNEY, Australia -- South Africa's AngloGold on Tuesday extended the closing date for its $2 billion bid for Australian gold producer Normandy Mining to January 4.

The offer was due to close on December 27.

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

Newmont last week boosted its cash and scrip offer for Normandy to the equivalent of A$1.90 a share, topping the AngloGold bid by 15 percent.

Normandy executive chairman Robert de Crespigny and the board have recommended that shareholders reject AngloGold's offer in favor of Newmont.

In a statement to the Australian Stock Exchange Tuesday, AngloGold said that after consultation with Normandy, and in light of a planned appeal to the Australian Takeovers Panel regulatory body and the Christmas holiday period, it was extending its offer to January 4.

Appealing Takeovers Panel ruling

AngloGold is appealing a Takeovers Panel ruling against its attempt to block Newmont's bid by claiming the structure of Newmont's bid favored some shareholders over others.

Newmont's bid is part of a package in which it said it would also buy Toronto-based Franco Nevada Mining Corp. Franco Nevada is the largest shareholder in Normandy, with a 19.9 percent stake.

AngloGold and Newmont have each raised their bids once, since AngloGold began the takeover battle with an initial offer on September 5 which valued Normandy at A$1.42 a share.

Normandy shares were unchanged at midday Tuesday at A$1.81, after closing Monday at a 3-1/2 year high.

Share price movements in the two bidding companies mean that the latest valuations for Normandy are A$1.73 a share from AngloGold and A$1.85 from Newmont.

There has been speculation that a third gold mining giant, Canada's Barrick Gold Corp, could enter the bidding for Normandy following completion of Barrick's merger with Homestake.

Shareholders in Homestake voted in favor of the merger Friday.