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 |
Wits Business School, University of the Witwatersrand |
| Setting |
International |
| Year |
2004 |
| Keywords |
Bidding strategy ; Hedge funds ; Arbitrage ; Gold ; Premiums, Options ; Corporate finance ; Investments ; Mergers and acquisitions ; Gold mining industry |
| Summary/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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