Loading ...UPDATE: Newmont’s stock gains after Barrick Gold makes hostile buyout bid
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Shares of Newmont Mining Corp. (NEM) rose 1.9% in premarket trade Monday, after Barrick Gold Corp. said it has made an unsolicited proposal to buy the rival gold miner, in a stock deal that would value Newmont at nearly $18 billion. Under terms of the bid, Newmont shareholders would receive 2.5694 Barrick shares for each Newmont share they own. Based on Friday’s stock closing prices, that would value Newmont shares at $33.50 each, which represents an 8.2% discount. With 532.7 million shares outstanding, the bid implies a market cap for Newmont of $17.84 billion. Newmont’s stock had run up 10.2% over the past week. Over the weekend, Newmont said Barrick had taken a stake (https://www.wsj.com/articles/newmont-says-rival-miner-barrick-gold-has-bought-a-small-stake-11551050912) in the company. Barrick’s bid comes six weeks after Newmont announced an agreement to buy Goldcorp Inc (http://www.marketwatch.com/story/newmont-announces-deal-to-buy-goldcorp-for-10-billion-2019-01-14). (G.T) in a stock deal valued at $10 billion. Barrick said Monday that it believes its proposed merger would unlock more than $7 billion net present value of synergies. Newmont’s stock has lost 5.7% over the past 12 months, while Barrick shares have gained 7.1% and the S&P 500 has edged up 1.7%.