Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, March 8, 2019

Article Excerpt

NEWMONT MINING CORP., $33.71, New York symbol NEM, is one of the world’s largest gold and copper producers. Its mines are in North America, South America, Australia and Africa. The company has rejected a hostile all-stock takeover offer from rival gold mining firm Barrick Gold Corp. (New York symbol GOLD). Barrick is offering 2.5694 of its shares for each Newmont share outstanding. Barrick shareholders would own 55.9% of the combined company, with Newmont shareholders holding the remaining 44.1%. Based on Barrick’s current market price, its offer for Newmont is worth $33.22 per NEM share. That’s 1.5% less than Newmont’s current price, which suggests Barrick will have to increase its offer. However, Newmont is open to merging its mines in Nevada with Barrick’s operations in that state. While they are still working on the terms of a joint venture, Barrick would reportedly own 55% of the combined operation, with Newmont holding the remaining 45%. As part of its takeover plan, Barrick felt combining the Nevada mining…