Action steps for African Business Schools
2011-05-24 13:56:36 UTC
Case Study: ANGLOGOLD vs NEWMONT: THE BIDDING WAR FOR NORMANDY
Title
ANGLOGOLD vs NEWMONT: THE BIDDING WAR FOR NORMANDY
Author
Durand, F ; Mitchell, C
Pages
33
Product Type
Reference #
304-218-1
Teaching Note
304-218-8 (8)
Institute
Setting
International
Year
2004
Keywords
Bidding strategy ; Hedge funds ; Arbitrage ; Gold ; Premiums, Options ; Corporate finance ; Investments ; Mergers and acquisitions ; Gold mining industry
Summary/
Abstract
Abstract
Bobby Godsell, Chief Executive Officer of AngloGold, South Africa's largest gold producer, had to decide whether to increase the company's bid for the control of Normandy, Australia's largest gold producer. AngloGold had made an offer for Normandy in early September 2001, and about two months later American mining giant, Newmont, had put in a competing bid for the Australian company. The case presents the choices facing AngloGold in its strategy to acquire Normandy and ward off the Newmont bid. It deals with the issues of national perceptions and loyalties, exchange rates, media and investor relations, and introduces the key role of arbitrageurs and hedge funds.
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Reports on the AABS Members Meeting 2011 and Responsible Management in Africa Conference 2011
