Barrick holding firm on Newmont price, source says

No intention to raise offer in hostile takeover

T ORON T O • Barrick Gold Corp. has no intention of increasing its hostile offer for

Newmont Mining Corp., according to a person familiar with the matter who asked not to be identified because the talks are private.

On Monday, Barrick proposed to buy Newmont in an all-share US$17.8-billion hostile deal that valued the rival miner’s stock at eight- percent below the prior closing price. Newmont responded that its board would consider the offer, while saying that its own pending takeover of

Goldcorp Inc. offered “superior benefits.”

The fact that Barrick won’t increase its offer is further indication “that their unsolicited negative premium bid is really intended to scuttle our previously announced combination with Goldcorp rather than generating value for Newmont shareholders,” Omar Jabara, a spokesman for Newmont, said by phone. “Their intentions are highly suspect.”

The world’s two largest gold producers have spent this week making their cases to their biggest investors, most of whom own shares in both companies. Barrick’s chief executive has defended the lack of a premium in the deal, saying there are US$ 7- billion in synergies from the combination and that will add value.

Toronto-based Barrick has also flagged the share prices of both companies on Feb. 20, before rumours began circulating of an offer, to explain its proposed bid price. At that point there was almost no discount, making the offer a zero-premium deal.

Newmont’s Jabara pushed back against that argument. “No deal has been approved by our shareholders and so what they’re proposing is a negative premium based on where our share price is trading right now,” he said. “Essentially they are cherrypicking a date to make it look