Friday, 14th January 2005 (2761 views)

Gold Fields has revealed that Harmony Gold's hostile bid for the firm has so far cost shareholders about R180 million.

Gold Fields spokesman Willie Jacobsz explained that this included $9 million for each of its two advisers, JP Morgan and Goldman Sachs, and around $30 million in legal fees and other expenses such as advertising, printing and communications.

Meanwhile, Harmony's marketing director, Ferdi Dippenaar, said he was unable to publish specific fees for Harmony's four advisors - HSBC, Investec, Merrill Lynch and Morgan Stanley - due to "client confidentiality".

However, he added that more detailed figures concerning fee structures would be released with the firm's second-quarter results later this month.

While Mr Dippenaar admitted the legal bill would be "huge" and higher than anticipated it was unlikely to exceed $4 million.

Further losses on the market capitalisations of these two companies will also be incurred.

 

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