Newmont trumps AngloGold again

MINING group AngloGold's push to reclaim its title as the world's biggest gold producer took a blow when US peer Newmont trumped for a second time its takeover bid for Australian miner Normandy.

Newmont lifted its offer by 10 Australian cents, taking the value of the bid to A$1.93 a share (69p), including a cash component of 50 cents. This values Normandy at A$4.3bn.

AngloGold, led by chief executive Bob Godsell, is offering a cash component of 30 cents a share as part of a deal worth A$1.81 a share based on today's prices, valuing Normandy at A$4.04bn. AngloGold started the bidding at A$3.2bn in early September. Newmont bid two months later, but its offer was matched last week when the South African group added a further 10 cents to its bid.

The auction is at the centre of a push to consolidate the gold mining industry, which hopes mergers will reinvigorate the price by slashing supply.

Newmont's bid is part of its three-way merger plan also including Canadian gold group Franco-Nevada, which has 19.9% of Normandy and has agreed to accept Newmont's offer. AngloGold's bid involves a plan for 'global co-operation' with Barrick Gold, the world's biggest producer.