Northern Star rejects a A$38.7bn proposal from Gold Fields

Gold Fields offered 0.3125 of its shares plus A$7.25 in cash for each Northern Star share, worth about A$27 and a 22% premium. Northern Star’s board said the proposal undervalued the company and was opportunistic, noting that about 73% would be paid in Gold Fields shares. Activist investor Elliott urged the board to engage.

Why it matters. A target can reject a bid paid mostly in shares if it doubts the value or the risk profile of the buyer’s stock.

Source

MINING.COM

In the course

Module 9: The M&A process