Newcrest's next move in takeover bid for Lihir Gold Matt Chambers From: The Australian April 09, 2010 12:00AM Increase Text SizeDecrease Text SizePrintEmail Share Add to DiggAdd to del.icio.usAdd to FacebookAdd to KwoffAdd to MyspaceAdd to NewsvineWhat are these?NEWCREST Mining will today update the market on its rejected $9.9 billion scrip and cash bid for Lihir Gold, after talks this week with shareholders on whether it should offer more or walk away. After allowing Newcrest to do partial due diligence, Lihir last week knocked back the resulting offer as too low, leading Newcrest to declare it would spend this week and early next discussing its next move with shareholders.
Yesterday, Newcrest was tight-lipped on how the talks had progressed.
Newcrest's three biggest shareholders -- BlackRock, Colonial First State and Fidelity -- are also Lihir's top three holders. They own about 39 per cent of Newcrest and 34 per cent of Lihir.
Yesterday, US pension fund Fidelity revealed it had sold a net 23.9 million shares since early March to reduce its stake in Lihir from 10.1 per cent to 9.1 per cent.
Most of the shares were sold on market at between $3.48 and $3.70 each on the first two trading days after Lihir's April 1 announcement that it had rejected Newcrest's bid.
Start of sidebar. Skip to end of sidebar. .End of sidebar. Return to start of sidebar. Newcrest is offering one of its shares and 22.5c cash for every nine Lihir shares.
Newcrest shares rose 23c to $35.50, valuing its Lihir offer at $4.17 a share, or $9.89bn.
Lihir shares rose 7c to $3.96.
Despite Lihir's shares trading well below Newcrest's implied offer price, Lihir said it had received a "positive" response from Australian institutions over its decision not to engage with the bigger goldminer. "We are not interested in selling the company cheaply," a spokesman said.
New Lihir chief executive Graeme Hunt met with shareholders in Sydney yesterday and will meet Melbourne shareholders today.
LGL Price at posting:
$3.96 Sentiment: None Disclosure: Held
