Barrick removes minimum tender condition for NovaGold shares
Last Updated: Thursday, November 9, 2006 | 5:39 PM ET
CBC News
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Barrick Gold said Thursday its offer to acquire NovaGold stock is no longer conditional on it getting a majority of the company's shares.
Barrick is offering $16 US a share for the Vancouver-based junior miner — a takeover offer that was dependent on Barrick having 50.1 per cent of NovaGold's shares tendered to its offer by Nov. 21.
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Some observers said there was doubt Barrick would get that stake. As of Tuesday, it had received only 22.5 per cent of NovaGold's shares.
So Barrick has waived the minimum tender condition from its offer and will take up and pay for all NovaGold shares deposited by Nov. 21, no matter how many that turns out to be.
"We understand that certain NovaGold shareholders were concerned about our ability to meet the minimum tender condition," said Barrick CEO Greg Wilkins in a statement released after the markets closed Thursday.
"With the condition removed, NovaGold shareholders now have certainty that any shares tendered to our premium all cash offer prior to the expiry date will be purchased by Barrick," he said.
Barrick Gold said it will not increase its $1.7-billion US offer beyond $16 US a share — what it calls its "best and final" offer — while NovaGold has advised its shareholders to reject that as "inadequate."
Barrick has been trying to acquire NovaGold since July.
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