Northern Star shares pop as Australian gold miner rejects $27 billion takeover proposal — SkimNews
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- Northern Star Resources shares jumped more than 9% Monday after the Australian gold miner unanimously rejected Gold Fields' unsolicited $27 billion takeover proposal
- Gold Fields offered 0.3125 of its own shares plus A$7.25 in cash per Northern Star share — a proposal received Sept. 14 that initially valued the target at A$38.7 billion ($27.15 billion), a 22% premium to Northern Star's Sept. 11 close
- By Gold Fields' Sept. 25 closing share price, the implied offer value had already fallen to A$36.1 billion, eroding the premium Northern Star's board had been pitched
- Northern Star Chairman Michael Chaney said Gold Fields was 'seeking to acquire one of the world's premier gold portfolios at a price that falls well short of what the Board considers to be its fundamental value and at a highly opportunistic time'
- Northern Star's board flagged that most of the consideration would be paid in Gold Fields shares and that the proposal carried several conditions, telling Gold Fields on Friday it would not engage further
- Bloomberg earlier reported that Gold Fields had approached Northern Star about a potential takeover, the disclosure that triggered Monday's stock move
Why it matters: Gold Fields' own stock has declined since Sept. 14, eroding the bid's implied value from A$38.7 billion to A$36.1 billion and weakening the 22% premium it originally pitched. Northern Star's refusal to engage leaves Gold Fields with three narrow options — raise the price, restructure the cash-stock mix, or attempt a hostile approach — none of which the source confirms it has pursued.
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