Peter Munk says Barrick, Newmont merger would benefit investors
03:21 PM ET · ABX
Peter Munk, stepping down next week as chairman of Barrick Gold (ABX +1.7%), hails the potential benefits of a merger with Newmont Mining (NEM -0.4%), saying investors should welcome the cost cuts and lower political risk that a combination could deliver.
Munk tells FT there are “obviously synergies available” from a potential combination of ABX and NEM, pointing out that the two companies had many assets “cheek by jowl” in Nevada, the top U.S. gold producing state.
Such comments could be an indication the companies are keeping open the possibility of resuming high-level negotiations, although talks would be unlikely to happen before NEM’s annual general meeting Wednesday or ABX’s annual meeting next week.
Deutsche Bank analysts wonder if the merger report was “a trial balloon… a matter of posturing to allow market participants an opportunity to opine and stock prices time to reflect a merger scenario.”
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April 22nd, 2014 at 7:58 pm
Peter Munk says Barrick, Newmont merger would benefit investors
03:21 PM ET · ABX