Market `pricing in a raised Harmony offer`
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Resources Editor
GOLD Fields` shareholders found themselves in a bizarre situation yesterday they could sell their shares into the market at a better price than was on offer from predator Harmony.
Analysts suggested that this meant that the market was anticipating that Harmony would boost its offer in the hostile takeover bid.
`On Wednesday evening this week, a Gold Fields shareholder could have done better by selling their shares on the market than by accepting the Harmony offer,` said a gold analyst.
`The most logical conclusion is that the market is pricing in an increased offer from Harmony.`
Harmony`s early settlement offer, which applies to up to 34,9% of Gold Fields shares, is due to expire tomorrow at midday, after which it should become clear whether the predator is making good progress in its hostile bid for Gold Fields.
Harmony director Ferdi Dippenaar last night accepted the market was pricing in a premium.
However, he said there were shareholders who had accepted the Harmony offer, even though he could not give any numbers.
Gold Fields publicly revealed yesterday that it had reached a truce with its biggest shareholder, Norilsk of Russia .
London`s Sunday Telegraph newspaper had reported last weekend that Gold Fields may buy Norilsk`s 20% stake in the company, citing an unidentified executive. Norilsk had earlier said it would back Harmony in the second of the bid`s two stages.
Meanwhile, judgment was reserved in court cases in Pretoria and Bloemfontein yesterday in separate attempts by Gold Fields to stop Harmony`s take-over bid.
In the Pretoria High Court, judgment is to be handed down this morning.
The court heard an appeal by Gold Fields against a ruling by the Competition Tribunal earlier this month that allowed Harmony to pursue its two-pronged takeover attempt.
In Bloemfontein, the Supreme Court of Appeal reserved judgment in an urgent challenge by Gold Fields against a Johannesburg High Court ruling, which refused to order Harmony to withdraw its offer to Gold Fields shareholders.
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