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Monday, 28th November 2005 (7176 views)

The future of gold mining giant Placer Dome has become even more hotly debated as another suitor signalled it may enter the bidding war for the Canada-based company.

Comments from the CEO of Newmont – the world's largest gold mining outfit – confirmed the New-York-based outfit may have designs on Placer – Canada's second biggest player.

Pierre Lassonde told Business Sunday that Newmont is considering making a bid but added that "it would be fair to say that we have to at least think about it".

Mr Lassonde's comments came hot on the heels of a $9.13 million hostile bid for Placer Dome by the globe's third biggest gold miner, Barrick Gold.

Placer's board urged shareholders to reject Barrick's advances after calling the bid "financially inadequate" and admitted it was looking into a number of other alternative transactions.

Rumours have been mounting for some time that Placer was trying to draw Newmont into the bidding process in order to fetch a higher price for the company.

 

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