Goldman but not glittering?

10 March 2006 By Edward Hadas

The bank was hired to reduce the miner s $7bn AngloGold stake. But while waiting, it placed $2bn of Gold Fields shares on behalf of Norilsk. Putting Norilsk ahead of Anglo could make it harder to sell the AngloGold shares. It wouldn t be surprising if Anglo was miffed.

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Goldman Sachs and Citigroup were joint bookrunners on the placing of a $2bn block of Gold Fields shares owned by Norilsk, a Russian mining company. The deal was announced on March 2 and completed the next day. The average price of the shares sold was $20.50. That was 6% below the closing price on the day before the announcement.

Anglo American announced on February 22 that it was planning a secondary offering of some of its 51% holding of AngloGold Ashanti at some time over the coming months. Goldman Sachs is one of the banks that have been hired to help with the transaction, according to people familiar with the situation.

Anglo wasn't told of Goldman's plans to handle the Norilsk sale in advance of that transaction, according to a person familiar with the situation. But it still plans to use Goldman for its AngloGold placing.

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