Monday, August 23, 2010

Barrick (NYSE:ABX), Newmont (NYSE:NEM) Out, Newcrest for Lihir (NASDAQ:LIHR) Acquisition

Rumors are winding down as clarity comes to the Lihir Gold Limited (NASDAQ:LIHR)acquisition story in connection to Newcrest Gold, as potential suitors Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) are apparently no longer interested in the company, clearing the way for the process to go forward.

Lihir shareholders voted their approval today to allow the merge to go forward, which will create a company valued at about A$25 billion. Measured by market cap, that will create the fourth-largest gold miner in the world.

The one remaining obstacle is the approval of a Papua New Guinea court, which is scheduled for August 27, with the scheme of arrangement taking effect on August 30.

Shareholders of Lihir will receive one Newcrest share for each 8.43 Lihir shares held, plus and additional 22.5 cents in cash for each share they hold.

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