Loading ...A top-10 investor in South Africa’s Gold Fields on Friday urged the miner to cancel its planned takeover of Canada-based Yamana Gold, saying the $6.7-billion transaction was expensive and did not guarantee growth and profitability.
Shares in the South African miner plunged 20% on May 31, when it announced the all-share transaction that would make it a top four global gold producer, amid concerns over valuation and shareholder dilution. The stock has not recovered since.
SIGN UP FOR THE PRECIOUS METALS DIGEST
Redwheel, which holds 3.38% of Gold Fields, on Friday became the first major investor to publicly call for the deal to be scrapped, saying the share price decline showed that the market believed the miner had made a “serious error” in pursuing Yamana.