Our neighborhood may change Newmont may need to sweeten $16.9 billion bid for gold rival Newcrest
MELBOURNE, Feb 6 (Reuters) - U.S.-based Newmont Corp's (NEM.N) $16.9 billion offer for Newcrest Mining Ltd (NCM.AX), an acquisition that would create a gold mining behemoth, may be too low in the wake of a leadership change at the Australian company, investors and analysts said.
Already the world's largest gold producer by market value and ounces produced, Newmont would produce nearly twice as much of the yellow metal as rival Barrick Gold Corp (ABX.TO) if the Newcrest deal went through. The offer, however, reinforces long-standing fears that gold acquisitions destroy rather than create shareholder value.
Newmont may need to sweeten $16.9 billion bid for gold rival Newcrest | Reuters