Thursday, 2nd June 2005 (2455 views)

Harmony Gold Mining has confirmed that it has received approaches for the company's 11.5 per cent stake in Gold Fields from Russia's Norilsk Nickel, Gold Field's largest shareholder.

The deal being hatched between Gold Fields and Norilsk Nickel would create a new international gold-mining giant.

Harmony Gold Mining currently owns a 11.5 per cent stake in Gold Fields which was picked up during its failed hostile takeover bid last week.

This stake would need to be bought by Norilsk Nickel in order to prevent the threat of a further hostile move on Gold Fields.

Harmony's stake in Gold Fields is worth about R4billion, according to Bloomberg, however Harmony has not offered the shares.

Harmony chief executive Bernard Swanepoel said yesterday that he had recently been approached by different "middlemen" who said they represented Norilsk and Gold Fields' empowerment partner, Tokyo Sexwale's Mvelaphanda.

Norilsk Deputy chief executive Denis Morozov has so far refused to comment.

If the combination does go ahead, the move would create a gold producer with annual output of about 2.6 million ounces, the seventh biggest in the word.

 

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