Gold Fields urges Harmony investors to reject offer

JOHANNESBURG – South Africa’s Gold Fields, the target of a US$7,13 billion (N$43,4 billion) hostile takeover bid by Harmony Gold, urged Harmony shareholders yesterday to vote against the offer, saying it was high risk and offered few rewards.

“The Harmony Board is undertaking a very risky acquisition strategy at your expense,” Gold Fields said in a letter to Harmony shareholders ahead of a November 12 vote on the takeover offer. Harmony, the world’s sixth-biggest gold producer, is seeking to create the world’s biggest gold miner by swallowing fourth-biggest Gold Fields in an all-share deal.Gold Fields sued Harmony in a U.S.court on Friday in a bid to stop the bid.Harmony said in a statement that Gold Fields’ legal and other actions were attempts to distract from issues which should have been put before shareholders.”It is clear to Harmony that all of these frustrating legal actions form a strategy by Gold Fields’ board and management to divert attention from their value-destroying Iamgold Corporation, Inc.proposal and to prevent Gold Fields’ shareholders from exercising their rights to consider a valid offer,” Harmony said.Gold Fields, which had been planning a deal with Canada’s Iamgold, has already launched legal action in South Africa and is also seeking to block the bid via South Africa’s Competition Commission.-Nampa-ReutersHarmony, the world’s sixth-biggest gold producer, is seeking to create the world’s biggest gold miner by swallowing fourth-biggest Gold Fields in an all-share deal.Gold Fields sued Harmony in a U.S.court on Friday in a bid to stop the bid.Harmony said in a statement that Gold Fields’ legal and other actions were attempts to distract from issues which should have been put before shareholders.”It is clear to Harmony that all of these frustrating legal actions form a strategy by Gold Fields’ board and management to divert attention from their value-destroying Iamgold Corporation, Inc.proposal and to prevent Gold Fields’ shareholders from exercising their rights to consider a valid offer,” Harmony said.Gold Fields, which had been planning a deal with Canada’s Iamgold, has already launched legal action in South Africa and is also seeking to block the bid via South Africa’s Competition Commission.-Nampa-Reuters