Golden finger

19 Jun 2019 By Ed Cropley Follow @edwardcropley

Barrick CEO Mark Bristow won’t sweeten his offer to minority investors of the Tanzanian gold miner. A small raise could defuse the damaging stalemate. But after an expensive and failed tilt at Newmont, Bristow is under pressure to be seen to defend his shareholders’ interests.

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Barrick Gold believes its proposed all-share offer to take full control of Tanzania-focused Acacia Mining is “more than fair”, Chief Executive Mark Bristow said on June 18.

Barrick valued Acacia at $1.3 billion in its 2018 annual report but said it had concluded, based on a recent review of Acacia’s mine plans, that some production assumptions were overly optimistic. Its current offer, which expires on July 9, values Acacia’s equity at 719 million pounds, or $903 million.

Acacia said on June 19 it strongly disagreed with a number of Barrick statements and urged shareholders to take no action.

Acacia shares were up 1.3% at 175.5 pence by 0753 GMT, a shade lower than Barrick’s offer based on its June 18 closing price of C$19.26.

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