Barrick could handle big takeoverhttps://today.reuters.com/news/articlenews.aspx?type=reutersEdge&storyID=2007-05-22T175100Z_01_N22416655_RTRUKOC_0_US-MINING-SUMMIT-BARRICK.xml&WTmodLoc=NewsHome_R4_reutersEdge-2
Barrick could handle big takeover, but in no rush
Tue May 22, 2007 1:51pm ET
NEW YORK (Reuters) - Barrick Gold Corp. (ABX.TO: Quote, Profile , Research) could handle a top-tier acquisition in the gold sector, but is wary of making such a move amid high M&A-driven stock valuations, the company's chief executive said on Tuesday.
Speaking at the Reuters Mining and Steel Summit, Greg Wilkins dismissed recent speculation the company might make a move on rival Newmont Mining Corp. (NEM.N: Quote, Profile , Research), but said the size of such a deal would not be a deterrent for Barrick, the world's No. 1 gold producer.
"We have an ongoing interest in acquisitions, but we have a lot of things on our plate that don't create a sense of urgency for acquisitions," he said, referring to mines in the pipeline.
While he said the company had not had any talks with Newmont, he added: "We could handle something (the size of) Newmont if we wanted to."
Wilkins also he was optimistic about keeping production costs in check, and said the company expects to wring $230 million in cost savings from last year's acquisition of Placer Dome, above original expectations of $200 million.
"We can hold the line on costs," he said.