National Post (National Edition)
Barrick’s hostile bid leads to hostile words
Tempers are flaring in the mining sector. A simmering dispute between the world’s two largest gold miners erupted publicly Monday as Barrick Gold Corp. formally made a hostile Us$18-billion bid to merge with Newmont Mining Corp. in a plan that would create the undisputed global leader in gold production.
The CEOS of the two companies — Barrick, based in Toronto; Newmont in Colorado — exchanged unpleasantries as they attended a mining conference in Florida on Monday.
“Barrick’s behaviour this morning unfortunately provides yet another clear example of why they are unqualified to manage Newmont’s global portfolio of world class assets,” said Newmont CEO Gary Goldberg.
Barrick CEO Mark Bristow retorted: “I have no doubt that we can do a better job than Newmont.”
In making the offer hostile by taking it directly to Newmont shareholders, Barrick will let them decide who has the best value proposition.
I HAVE SPENT A LOT OF TIME IN NEVADA, AND I HAVE NO DOUBT WE CAN DO A BETTER JOB THAN NEWMONT — MARK BRISTOW, CEO, BARRICK
BARRICK’S BEHAVIOUR PROVIDES ANOTHER EXAMPLE OF WHY THEY ARE UNQUALIFIED TO MANAGE NEWMONT … — GARY GOLDBERG, CEO, NEWMONT
TORON TO • On the day Torontobased Barrick Gold Corp. put forward a US$17.8 billion hostile bid for its rival Newmont Mining Corp., the chief executives of both companies conveniently found themselves at the same industry conference in Florida — and the acrimony flared up.
Speaking to a packed-hotel ballroom, on Monday, Newmont chief executive Gary Goldberg denounced the integrity and qualifications of his counterpart, Barrick chief executive Mark Bristow.
“Clearly, our hope that Mark and his team would bring a fresh and professional approach to managing Barrick’s business has proven disappointing,” said Goldberg at BMO’S Metals and Mining Conference in Hollywood, Fla.
He added, “Barrick’s behaviour this morning unfortunately provides yet another clear example of why they are unqualified to manage Newmont’s global portfolio of world class assets.”
Bristow reciprocated by saying Goldberg would soon be gone, having already announced retirement plans for the end of 2019 — a plan that one person familiar with the deal noted undercuts Goldberg’s argument that Newmont has a more experienced management team.
“Gary Goldberg’s not in place for long, by his own admission,” Bristow told a Bloomberg reporter at the conference.
Thus continues the latest chapter in the long running, ongoing duel between Newmont and Barrick, the two largest gold companies in the world, which last dabbled with merger talks in 2014 only for the discussions to break down amid sniping comments in the press.
This time, however, the stakes are different: Colorado-based Newmont is hoping to close a US$10 billion acquisition of Vancouver-based Goldcorp, which would make it the largest gold producer in the world, and is scheduled for a shareholder vote in April but has been thrown into question by Barrick’s unexpected all-share offer — which it calls no-premium, and Newmont calls a negative premium.
Both companies operate mines in a dense patch of Nevada desert, and Barrick told shareholders this creates an obvious rationale for a combination.