The Globe and Mail reports in its Monday edition that Barrick Gold is attempting to turn up the heat on Newmont Mining by forcing a change to its corporate bylaws as it weighs a hostile bid for the Colorado-based miner. The Globe's Niall McGee writes that Newmont said on Sunday that Barrick has indicated it will try to lower the ownership threshold that would allow a Newmont shareholder to call a special meeting. If the manoeuvre is successful, it could make it easier for Barrick to put forward a takeover offer for its American rival, then force a vote on it.
Barrick has taken a small stake in Newmont that would give it the right to push for a resolution at Newmont's next annual general meeting, a Newmont spokesperson said Sunday. Currently, Newmont's bylaws stipulate that shareholders must own 25 per cent of the company in order to call a special meeting. Barrick is proposing cutting that threshold to 15 per cent.
The developments could signal Barrick's intention to forge ahead with a plan to table a hostile takeover offer for Newmont. BlackRock, Vanguard and Van Eck Associates are the top three holders of Newmont's stock with a collective stake of just under 24 per cent, according to Thomson Reuters data.
© 2024 Canjex Publishing Ltd. All rights reserved.