Business Maverick: Gold Fields Rules Out Raising Yamana Offer After Rival Bid

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Gold Fields Ltd. said it won’t raise its offer for Yamana Gold Inc. after two Canadian rivals teamed up with an unsolicited $4.8 billion bid to break up an earlier merger agreement with the South African miner.

Its offer for Yamana is “strategically and financially superior” to the deal put together by Pan American Silver Corp., and Agnico Eagle Mines Ltd., Johannesburg-based Gold Fields said in a statement Monday. That’s at odds with Yamana, which said the cash-and-stock proposal announced on Friday is “superior” to the Gold Fields agreement reached back in May.

“We do not expect Gold Fields management to get pulled into an all-out bidding war given their conservative nature and resistance from shareholders against its original Yamana offer,” Arnold Van Graan, an analyst at Nedbank Group Ltd., said in a note to clients.Read: Yamana Takeover Battle Brews as Rivals Make $4.8 Billion Bid

“The board has unanimously determined that it will not offer to change the terms of the transaction,” Gold Fields said in the statement. “The board has taken into account its commitment to capital discipline and considered the fairness of the transaction to both Gold Fields and Yamana shareholders over the long term.”

 

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COMPANIES: Gold Fields’ pursuit of Yamana hits a new snag as rivals make their own bidGold Fields, whose $6.7bn offer is an all-share one, spun the $4.8bn cash-and-share counteroffer in the best possible light.
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