As 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.