Thursday, 4th November 2004 (2572 views)

The chief executive officer of Gold Fields in the United States has addressed an open letter to shareholders regarding an attempted takeover by Harmony Gold Mining.

Ian Cockerill has filed a Solicitation/Recommendation Statement with the US Securities and Exchange Commission (SEC) on Schedule 14D-9 and has advised that holders of the company's ordinary shares and American Depositary Shares read it.

In the letter, addressed to Harmony, Mr Cockerill insists that "Gold Fields embraces the philosophy of constructive and open engagement with all stakeholders" and stresses the company's commitment to South Africa.

The Gold Fields chief points out that the company has spent more than 4.8 billion rand in its South African mines in the last five years, has invested in communities and developed the skills of thousands of South Africans at the Gold Fields Academy.

In just five years, Gold Fields has grown its international portfolio from zero production to 1.5 million ounces per annum in South Africa.

In a bid to persuade shareholders to oppose Harmony's attempted takeover, Mr Cockerill wrote: "Harmony's hostile offer has an inequitable structure which seeks to disenfranchise the majority of our shareholders. Furthermore, this offer does not represent fair value and is funded by overvalued Harmony shares. We cannot recommend this to our shareholders."

 

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