Placer Dome Rejects Barrick's $9.2 Billion Takeover Bid

Strategic Insights -

Placer Dome Inc.'s board is unanimously recommending that shareholders reject Barrick Gold Corp.'s hostile cash-and-stock takeover offer, citing declining production and hedgebook liability at Barrick. This decision comes amid a surge in demand for silver, with antimicrobial efforts driving consumer interest. Meanwhile, Phelps Dodge has been granted licenses for copper and gold exploration in Kosovo, and Umicore has agreed to purchase the assets of Suzhou Alloy Material Factory Co. Ltd.

Key Takeaways:

  • Placer Dome's board recommends rejecting Barrick's $9.2 billion takeover bid due to Barrick's declining production and hedgebook liability.
  • The antimicrobial effort is driving up demand for silver's germ-killing components, impacting the silver market.
  • Phelps Dodge has been granted licenses for copper and gold exploration in Kosovo by the Mining Board of the Serbian province.
  • Umicore has signed an agreement to purchase all assets and business activities of Suzhou Alloy Material Factory Co. Ltd.
  • Johnson Matthey reported a first-half pretax profit of GBP106.4 million, a 20.7% increase from the previous year.
  • Cambrian Mining has agreed to sell its portfolio of base and precious metals assets to AGD Mining for A$7.7 million in shares and options.
  • Geopacific Resources NL is attempting to raise A$4.5 million through an initial public offering in Australia.
  • Platinum prices have soared to a 26-year high of nearly $1,000 an ounce at the Bushveld mine in South Africa.

Statistics:

  • Barrick's hostile cash-and-stock takeover offer is valued at $9.2 billion.
  • Johnson Matthey's first-half pretax profit increased by 20.7% to GBP106.4 million compared to the previous year's profit of GBP88.3 million.
  • Platinum prices have reached a 26-year high of nearly $1,000 an ounce at the Bushveld mine in South Africa.
  • Geopacific Resources NL is attempting to raise A$4.5 million through an initial public offering in Australia.
  • Umicore is purchasing the assets of Suzhou Alloy Material Factory Co. Ltd. for an undisclosed amount.
  • Phelps Dodge has been granted licenses for copper and gold exploration in Kosovo.

Sources:

  • Dow Jones Commodities News via Comtex (VANCOUVER, Nov 23, 2005)
  • Barrick Gold Corp. (ABX)
  • Placer Dome Inc. (PDG)
  • Phelps Dodge (PD)
  • Umicore (Suzhou Alloy Material Factory Co. Ltd.)
  • Johnson Matthey PLC
  • Cambrian Mining
  • Geopacific Resources NL
  • Impala Platinum Holdings
  • New York Mercantile Exchange (NYMEX)
  • Comtex SmarTrend(SM) Alert