The news feeds on this site are independently provided by Adfero Limited © and do not represent the views or opinions of the World Gold Council.

Friday, 13th October 2006 (4470 views)

Canadian-based Barrick Gold has decided to extend its hostile takeover bid of NovaGold until the end of October.

It is the third extension that Barrick has granted, lasting until October 24th. However, NovaGold's board remain in opposition to the C$1.5 billion takeover, citing it as an undervaluation.

The offer is for C$14.50 per share but this is below NovaGold's current share price of C$15.35 per share.

Barrick chief executive Gregory Wilkins remarked: "We are providing additional time for NovaGold shareholders to consider our offer, which we believe should be substantially more attractive to NovaGold shareholders today than when it was announced in late July."

On the other hand, the chairman of the special committee of NovaGold's board of directors Gerald McConell stated that he was waiting for Barrick to offer a "fair value" for NovaGold's shares.

NovaGold has proved an attractive option for Barrick due to its gold and copper resources and projected values of a project at Donlin Creek.

Barrick believes its bid to be fair because of a 7.6 per cent decline in the XAU Gold and Silver Index, a decline in gold prices of US$40 per ounce and a failure on behalf of NovaGold to outline any further value from its current projects.

 

« Back to Gold News stories