ANGLOGOLD PULLS OUT OF FIGHT FOR AUSTRALIA'S NORMANDY

1/18/2002 5:24:00 AM

MELBOURNE, Jan 18, 2002 (AsiaPulse via COMTEX) -- After four long months, AngloGold Ltd (AGG) tonight gave up its fight for Australia's biggest gold producer Normandy Mining Ltd (NDY).

However, the decision to let its $A4.4 billion ($US2.26 billion) offer lapse was not without its own troubles.

In a fax sent to the Australian Stock Exchange, lawyers Freehills mistakenly had the South African extending its offer for another week, a statement which was later retracted.

"Please disregard the previous fax sent to you at approximately 7pm this evening," Freehills partner Baden Murphy said in a statement to the ASX.

"This fax was sent in error.

"The AngloGold Ltd bid for Normandy Mining Limited is now closed."

The withdrawal of AngloGold clears the way for US-based Newmont Mining Corp, which made its pitch for Normandy in November.

"We feel very pleased that the market has decided to vote for our transaction and AngloGold has decided to accept that decision and let their offer for Normandy lapse," Newmont vice-president of corporate development Randy Eppler told AAP.

The Newmont offer is open for acceptances and is due to expire on February 15.

"(Normandy shareholders) have Newmont's commitment to proceed with this transaction and give our full attention to the smooth implementation of this acquisition," Mr Eppler said.

AngloGold pulled the plug tonight after the flow of acceptances for its offer slowed to a trickle.

The last time it gave notice, AngloGold had acceptances for less than seven per cent of Normandy stock.

AngloGold had hoped to win at least 10 per cent of the stock, which would have prevented Newmont from reaching a 90 per cent acceptance level, which allows it to move to compulsory acquisition of the remaining shares on issue.

Over the past week, Newmont further consolidated its chances of winning the takeover war, increasing the gap between the rival offers and clearing more regulatory hurdles.

Newmont also managed to get AngloGold to declare its offer of 2.15 of its shares and $A30.00 ($US15.41) for every 100 Normandy shares final after it took the matter to the Takeovers Panel earlier this week, forcing its rival to concede it would not increase its bid.

Worth $1.99 per share at the close of trade in New York last night, the AngloGold offer trailed the Newmont bid, which is worth an implied $2.05 per share.

Newmont is offering 3.85 of its shares plus $A50.00 ($US25.69) cash for every 100 Normandy shares.

Normandy shares eased four cents to $2.01.

The Newmont offer, part of a complex deal which will also see it take control of 19.9 per cent Normandy shareholder Franco-Nevada Mining Corp, also has the support of the Normandy board.

"Today, more than ever, the compelling choice is to accept Newmont's superior offer and reject AngloGold's overtures," Newmont chief executive Wayne Murdy said yesterday.

Newmont's offer has now cleared most regulatory obstacles, including Foreign Investment Review Board approval.

Its shareholders will vote on the deal on February 13.

AngloGold put in its pitch to takeover Normandy in early September, looking for a way to diversify its asset base out of South Africa.

At first the deal appeared a fait accompli, with Normandy chief executive Robert Champion de Crespigny making a surprise appearance at the launch of the offer.

However as the weeks went by he made it clear it was no done deal.

A month later rumours began to emerge of a possible counterbid by US-based Newmont, which finally eventuated in the middle of November.

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(C) 2002 Asia Pulse Pte Ltd


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