Randgold goes hard on $1.8bn Ashanti offer 24 Sep 2003 Rising gold prices have done wonders for Randgold s share price, and its audacious reverse takeover offer for the Ghanaian group. In just six weeks, the value of its bid has increased by a quarter, while Anglogold s rival offer has risen by less than 15%.
BHP rides high on economic recovery hopes 28 Aug 2003 Mining stocks have been among this year's best performers. Hopes of a global recovery and frothy commodity markets have lit up share prices. But the rises have come too far, too fast. Valuations now leave little margin for error.
Randgold makes indicative offer for Ashanti 11 Aug 2003 The UKbased gold miner has offered a bigger premium than rival suitor AngloGold. But the financing of the bid looks flaky. The bid battle is about political concessions as much as value. Ghana s government will have a big say in who walks off with the prize.
Xstrata wins MIM by a whisker 6 Jun 2003 The UKSwiss miner s bid for its Aussie rival is all over bar the shouting. Xstrata needed 50% of MIM shareholders and got 59%. Opponents may try to block the deal on the grounds that hedge funds increased their votes by splitting their holdings. That may backfire.
Xstrata arbs are still in with a chance 27 May 2003 Forget the creation of shareholder value. The UK miner s rights issue to fund the takeover of MIM shows the value of shareholder creation. If the arbs can find a way to create thousands of new MIM shareholders, they will profit from buying the traded rights on the cheap.
MIM agrees $2.96bn Xstrata offer 7 Apr 2003 The takeover builds the world's largest thermal coal producer, and diversifies Xstrata away from coal and its South African base. It will also earn over Xstrata's cost of capital, it says. Add a bigger, more geared free float, and no wonder shareholders are pleased.
BHP gains greater control over BHP Billiton 6 Jan 2003 The shock departure of CEO Gilbertson due to "irreconcilable differences" weakens the role of the old Billiton. The new CEO, Goodyear, is an exBHP man. He has solid credentials. But investors in the UK arm may worry power is shifting to Australia.