Normandy mulls Anglo-Barrick plan

AUSTRALIA'S biggest gold miner, Normandy, is seeking talks with takeover suitor AngloGold concerning the South African giant's plans to pursue 'global co-operation' with North American counterpart Barrick.

Normandy has already recommended shareholders to accept a takeover offer from America's Newmont Mining, worth almost exactly the same as AngloGold's bid, but it said today it wanted details of the AngloGold-Barrick plan before updating its advice.

AngloGold said on Thursday that the savings from its proposed deal with Barrick justified the latest increase in the terms of its offer for Normandy. Both offers comprise paper and cash and value Normandy at about A$4.1bn (£1.5bn) but Newmont is offering 10 cents more in cash.

AngloGold is talking to Barrick about ways of realising synergies from their mining operations, particularly in Australia and Tanzania. Key parts of the plan involve streamlining management at the Kalgoorlie Super Pit, Australia's biggest gold mine owned jointly by the two companies, and an invitation from AngloGold for Barrick to become involved in the lucrative Boddington project.

'Normandy is currently unaware of Newmont's likely response to the revised AngloGold offer,' Normandy said.