Harmony may boost offer to revive bid for Gold Fie
Harmony may boost offer to revive bid for Gold Fields
--------------------------------------------------------------------------------
Resources Editor
HARMONY Gold is poised to increase the value of its offer for rival Gold Fields after the miner withdrew an application to waive a condition of the bid at the eleventh hour.
Such a move could revive the flagging bid as Harmony has so far acquired only 11,5%-11,8% of Gold Fields.
`We have heard that the offer may be increased from 1,275 Harmony shares for each Gold Fields share to 1,5 Harmony shares,` an analyst said yesterday.
`It would mean that Harmony is trying to secure sufficient extra Gold Fields shares to be able to take control of the Gold Fields board.`
However, a spokeswoman for Harmony CE Bernard Swanepoel said last night that she could `firmly deny` that the offer might be increased today — although she would not rule out an increase at a later stage.
Harmony has an undertaking from Norilsk Nickel of Russia, Gold Fields`s largest shareholder, that the 20% it holds will be sold to Harmony — although it is likely that if Norilsk was made a better offer, it could withdraw its support for Harmony.
The Securities Regulation Panel confirmed yesterday that Harmony decided at 10pm on Wednesday to cancel an application to extend the condition in its offer that it would obtain more than 50% of Gold Fields shares.
This means that the offer will become unconditional from the end of this month — something Harmony confirmed last night, noting it was still determined to win control of Gold Fields.
Gold Fields CE Ian Cockerill said yesterday that there had been no worthwhile discussion with Harmony this month, despite an undertaking in Moscow by both parties that they would
try to find a friendly solution.
Cockerill suggested that he was still waiting for Harmony to provide information, which would enable him to assess whether there was a prospect of a friendly deal.
`We are still waiting,` Cockerill said.
`They`ve provided us with nothing to make a decision on.`
He said Gold Fields had asked Harmony to provide audited reserve statements and full reviews of its accounts and mines and to do something about its moneylosing shafts, Cockerill said.
He suggested Harmony`s new reserve estimates, initially promised last month, would probably be delayed until next month. Cockerill rejected recent comments attributed to Harmony chairman Patrice Motsepe, which indicated the two gold producers had reached agreement on almost everything but price.
`An arrangement will be reached,` Motsepe was quoted as having said.
`I`m confused, nothing has been agreed,` Cockerill said. `They must have been telepathic negotiations.`
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
