Northern Star Rejects Gold Fields’ $27 Billion Takeover Bid
Shares of the Australian gold miner rose more than 9% after its board rejected the proposal, calling it materially below the company’s value.
Northern Star Resources rejected Gold Fields’ proposal to acquire the Australian gold miner, sending Northern Star shares more than 9% higher in Monday trading and putting a $27 billion deal in doubt.
Gold Fields proposed buying all of Northern Star through a combination of 0.3125 Gold Fields shares and 7.25 Australian dollars in cash for each Northern Star share. The proposal, received Sept. 14, initially valued Northern Star at $27.15 billion and represented a 22% premium to its Sept. 11 closing price.
The board unanimously turned down the proposal, calling its valuation inadequate and the approach “highly opportunistic.” The company also objected to the large share component and the conditions attached to the proposal.
Northern Star Chairman Michael Chaney said Gold Fields was seeking to acquire what he described as one of the world’s premier gold portfolios at a price below its fundamental value. Northern Star told Gold Fields on Friday that its board did not consider further engagement appropriate.
