Barrick Gold, Newmont Mining merger talks end acrimoniously

Newmont Mining (NEM -6.3%) is blaming Barrick Gold (ABX -2.1%) for the collapse of merger talks between the two companies, with NEM Chairman Vincent Calarco saying ABX co-chair John Thornton told him twice last Thursday that the process was "dead."

The latest round of talks appears to have ended acrimoniously, with NEM saying in a letter to ABX that a constructive, respectful relationship did not exist between the two companies, and also did not like that ABX Chairman Peter Munk said in a newspaper interview that NEM was "extremely bureaucratic and not shareholder friendly."

Speculation about a possible hostile bid by ABX could heat up, but Munk has said he would be reluctant because of the potentially large premium he would have to pay.

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Comments (7)
  • Maobama
    , contributor
    Comments (487) | Send Message
    Once again shareholders lose, while CEO's and upper managers protect their perks and privileges.


    The gold sector is really run by some of the least shareholder friendly managers in the public markets.
    28 Apr 2014, 01:46 PM Reply Like
  • User 195396
    , contributor
    Comments (446) | Send Message
    I am not at all sure that this deal was a plus for shareholders-my opinion is that NEM, altho I have no position in either stk, is a lot better off without the baggage that ABX would bring to the table.
    28 Apr 2014, 02:20 PM Reply Like
  • Dan Naumov
    , contributor
    Comments (358) | Send Message
    I wonder if the ridiculous irony of Barrick's chairman calling NEM "bureaucratic and not shareholder friendly" is lost on him.
    28 Apr 2014, 01:57 PM Reply Like
  • TDWelander
    , contributor
    Comments (624) | Send Message
    To Dan Maumov. Based on the last several years, ABX Chairman Munk rarely speaks out unless he is certain or confident in what he is saying. Or simply, he is one of the more credible people around. And Mr Thornton is in a similar even more quiet boat.


    So to say their words are lost on them does not reflect their highly selective and very sparse use of public comments or pronouncements.


    If you know of any large American company that is not bureaucratic from most perspectives, especially people outside the U.S., please point them out.


    Large American companies are giving the French and the Chinese competition on expert bureaucratic distractions, based on my readings and travels.


    Or just generally ugly to deal with large American Companies unless you are another large American Company. Meaning their way or the highway and you better plan on having a realistic alternative for even thinking about dealing with a large American company. As it is probably a pie in the
    sky alternative attempting to deal with a large American Company.


    So where have you been?
    28 Apr 2014, 02:48 PM Reply Like
  • tiger8896
    , contributor
    Comments (740) | Send Message
    Look at the 10 year performance of both companies, both aren't worth buying by themselves, god forbid anyone would if they were combined.
    28 Apr 2014, 03:00 PM Reply Like
  • TDWelander
    , contributor
    Comments (624) | Send Message
    To tiger8896. Look at the ABX P/E. It has been between 6 and 12;
    and has never been above 15 in the last five to 10 years; or has
    always been a buy.


    Look at the ABX dividend, cut back lately, but still there. How
    many stocks pay a decent dividend most of the time; very few.
    Barrick ABX almost always has.


    Look at the other stats as provided by Morningstar. No company
    on the planet is doing better than ABX based on those stats.
    Look back at those same stats, they out perform nearly every
    other company over time.


    So what ten year performance are you referring to? The actual
    one in the stats is not quite phenomenal, but certainly close;
    with very few competitors.


    Ignore the stats, which are facts and look like a fool, just like
    turville. If you keep up the BS, I am confident you will see
    what it gets you.


    There are no pseudonyms you can hide behind. The software
    specialists I know say so. Tread with BS at your own risk.
    29 Apr 2014, 12:23 PM Reply Like
  • turville
    , contributor
    Comments (70) | Send Message
    tiger 8896 and user 195396:


    well spoken the pair of you. "A match made in heaven" - hardly. TD Welander -more of his expected ramblings.


    As for Munk and Thornton - poor communicators with shareholders and again shareholders being treated very badly.
    28 Apr 2014, 11:48 PM Reply Like
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