Barrick bid for NovaGold expires; owns 14.8%
Last Updated: Thursday, December 7, 2006 | 4:15 PM ET
CBC News
Related
Internal Links
Barrick Gold said it has ended its five-month-old takeover bid for NovaGold Resources Inc. after picking up just 14.8 per cent of the company's shares.
In a release issued before the opening of stock markets, Barrick said it had acquired 13.6 million shares of NovaGold, making it the company's largest shareholder.
"Barrick will continue its disciplined approach to acquisitions and other business opportunities," said Greg Wilkins, Barrick's president and CEO.
In November, Barrick said its offer to acquire NovaGold stock was no longer conditional on it getting a majority of the company's shares.
Before that, Barrick had been seeking a minimum of 50.1 per cent of NovaGold's shares. But as the weeks wore on, it became increasingly clear it would fall short.
Barrick Gold kept extending its takeover offer but NovaGold kept rebuffing it. Barrick's "best and final" offer expired Wednesday.
NovaGold called Barrick's bid of $16 US per share for the company a "low-ball" offer, even though Barrick had boosted it from the $14.50 US a share it had originally offered in July.
In a release Thursday, NovaGold said it could "once again focus 100 per cent of its efforts on advancing its projects" now that the hostile bid had expired.
"NovaGold received outstanding support from its shareholders throughout this prolonged takeover attempt," said NovaGold CEO Rick Van Nieuwenhuyse. "Our shareholders were the 'white knights' in this process."
Barrick's offer for the Vancouver-based company was worth about $1.7 billion.
Shares of NovaGold rose 30 cents to finish at $18.80 on the TSX, while Barrick closed with a gain of 47 cents at $35.37.
Share Tools
Top News Headlines
- Canadian Pacific strikers face back-to-work legislation
- Labour Minister Lisa Raitt is prepared to end the Canadian Pacific Railway strike if necessary, after both CP and the union rejected a proposal for voluntary arbitration by the government-appointed negotiator on Sunday. Raitt says she is "extremely disappointed." more »
- Syrian regime denies role in Houla massacre
- The UN Security Council condemned the Syrian regime at an emergency meeting Sunday, holding president Bashar al-Assad's military responsible for the massacre of more than 100 people, dozens of whom were children younger than 10 years old. more »
- Ryder Hesjedal wins prestigious Giro d'Italia
- Victoria, B.C., native Ryder Hesjedal has become the first Canadian to win one of the cycling world's three Grand Tour events, wrapping up the 2012 Giro d'Italia with an excellent performance in the final stage in Milan. more »
- Neighbour may have helped find missing kids in Mexico
- Two Winnipeg children who had been missing for nearly four years were found in Mexico after a man raised concerns about his neighbour, according to a private investigator. more »
Latest Business Headlines
- Bankia asks Spain for €19B
- The board of directors of Spain's troubled bank, Bankia, has asked the Spanish government for €19 billion ($24.5 billion Cdn) in financial support. more »
- EI reforms aim to boost employment, Flaherty says
- Finance Minister Jim Flaherty defended his government's proposals to change employment insurance, saying the aim is to remove "disincentives to employment." more »
- Employment Insurance review boards to be scrapped
- The federal government is scrapping two review boards used by people appealing decisions made about their employment insurance. more »
- Ottawa moves to limit foreign investment reviews
- The federal government is raising to $1 billion the amount of foreign money that can go into a Canadian company before the investment is reviewed. The review has been used in the past to block foreign takeovers of MDA and Potash Corp. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 11576.47 | 10.4 |
| DOW | 12454.83 | -74.92 |
| NASDAQ | 2837.53 | -1.85 |
| SP 500 | 1317.82 | -2.86 |
| NYSE COMPOSITE | 7534.32 | -18.01 |
| AMEX | 2227.37 | 1.45 |
| TSX-VENTURE | 1309.27 | 26.8 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
Business Features
- Accused in blast that killed Alberta mom handled her funds
- Remains found in bag on Cape Breton river ID'd
- Neighbour may have helped find missing kids in Mexico
- Quebec students, government to resume talks
- Syrian regime denies role in Houla massacre
- Lip-dub marriage proposal an internet hit
- Canadian Pacific strikers face back-to-work legislation
- B.C. NDP calls for unity in fighting coast guard closure
- Calgary Marathon winner breaks 21-year-old record

