Norilsk deal still on, says Harmony CE Swanepoel
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Resources Editor
HARMONY CE Bernard Swanepoel expressed confidence last night that a deal to purchase the 20% of Gold Fields held by Norilsk Nickel of Russia remained valid.
This was despite Monday`s announcement that Norilsk executive Leonid Rozhetskin, who was a key player in the process, had left the Moscow-based company.
`Norilsk is a legitimate company with honourable people, so I am convinced that their irrevocable agreement (to sell their 20% of Gold Fields to Harmony) is in place,` said Swanepoel.
He said although attempts were made in Moscow last month to seek a negotiated deal between Gold Fields and Harmony, `this is not necessarily a very constructive process ` . He said Harmony intended to continue its efforts to gain control of Gold Fields by acquiring further shares in its rival.
`I am as confident as ever that control of Gold Fields is within our grasp,` he said.
However, a local gold analyst said Harmony might struggle to produce impressive financial figures for the December and March quarters, as it has battled the strong rand.
`If Harmony is seen to be bleeding, the chances are that there will be little appetite to accept its existing offer which involves purchasing Gold Fields` shares with those of Harmony.`
Whatever happens, he said Norilsk was likely to play a key role in deciding the outcome.
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