Reasons cited included inadequate compensation for the “strategic value of Placer Dome’s assets”, a hedge book $US2.4 billion in the red, and the claim that Barrick’s gold production is expected to decrease in 2010 - in contrast to Placer’s increased output.
Placer further claimed that it has “the industry’s best long term growth profile”
“It’s easy to see why Barrick needs Placer Dome, but its difficult to understand why Placer Dome should want Barrick,” Placer’s CEO Peter Tomsett said in a market statement.
Barrick’s $US9.2 billion bid values Placer’s shares at $US20.50. The shares were trading at a little over $A29 in midday trade on the ASX.
Should the offer succeed, Barrick would be the biggest gold miner in the world with annual production of 8-9 million ounces.
