Takeover target Lihir Gold Ltd
(ASX:LGL) last night closed the doors to its data room to potential bidders with reports that North American gold miners Newmont Mining and Barrick Gold have both been in the data room.
The two North American giants are being seen as possible rivals to Newcrest Mining Ltd (ASX:NCM) $9.5 billion offer.
Newcrest is offering one of its shares for every 8.43 Lihir shares and 22.5 cents cash per Lihir share.
Lihir agreed to the Newcrest’s offer on the condition that it was able to continue to let potential bidders have access to its data room.
The Aussie gold miner had until today to produce a counter-bid to Newcrest’s takeover offer.
A rival bid may still be made but it is unlikely to come before an independent expert’s report is released later this month which will give potential bidders a chance to learn more about Newcrest’s offer.
However, Lihir could face a US$60 million break fee and would not be able to offer the new suitor due diligence.
Lihir shareholders will vote on the proposed takeover offer at a meeting next month, with the deal expected to be finalised in August.
Newcrest Mining reported a $248.1 million profit for the year to June 30, 2009.
