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Kinross Gold (KGC +3.8%) rallies on a report from Veritas Investment that speculates Canadian...

  • Friday, July 13, 2012, 11:12 AM ET
    Kinross Gold (KGC +3.8%) rallies on a report from Veritas Investment that speculates Canadian peer Barrick Gold (ABX) will make an offer. Veritas argues Barrick is motivated to increase its scale at a time when major new gold discoveries are difficult to find, and that the recent drop in Kinross' shares will make the miner amenable to a deal. Stifel thinks Kinross' valuation and growth profile will appeal to Barrick, though Barrick's high debt load makes an all-cash offer unlikely.
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  •  
    Barrick is really the only producer of size that can take on a Kinross but I doubt they do so.

    Exploration work has been solid for Barrick with the Goldrush discovery in Nevada.
    13 Jul 2012, 11:36 AM Reply Like
  •  
    I do not remember the details, but Kinross has some unique liabilities; maybe not worth taking on. Who has the Kinross liability details to list here? A newer miner with fewer lawyers with their hands into them is probably a higher priority; especially if they have large, proven reserves and stable gold production. Anywhere the lawyers have more than a small stake, there is likely to be trouble. Maybe trouble anyway, but they will not have had an inside look at the company and where they can create trouble; or magnify any inside flaw beyond any normal proportion.
    13 Jul 2012, 02:43 PM Reply Like
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