Newmont rejects Barrick’s hostile takeover bid

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noneAs expected, Newmont’s board of directors rejected Barrick’s $18 billion hostile takeover bid Monday morning. The Newmont board also submitted a joint venture proposal to Barrick in which the two mining giants would jointly operate properties in Nevada.

The joint venture “would enable both companies’ shareholders to realize the available synergies while avoiding the significant risks and complexities associated with Barrick’s unsolicited proposal,” Newmont said in a statement.

Barrick could recraft its offer, but is unlikely to do until late this month when Newmont shareholders get closer to voting on a separate deal, Newmont’s proposed merger with Goldcorp, the Wall Street Journal reported Monday.

Elko Mayor Reese Keener told the Elko Daily Free Press last week that Barrick taking over Newmont would create “a single mining behemoth” posing a threat to wages and suppliers.

Hugh Jackson
Editor | Hugh Jackson was editor of the Las Vegas Business Press, senior editor at the Las Vegas CityLife weekly newspaper, daily political commentator on the Las Vegas NBC affiliate, and author of the Las Vegas Gleaner political blog. Prior to moving to Las Vegas, he was a reporter and editor at the Casper (Wyoming) Star-Tribune.

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