Gold Mining Company Opposes Takeover Bid

By Bloomberg, AP and Staff Reports

The board of Canadian gold mining company Placer Dome Inc. is recommending that shareholders reject a $9.2 billion takeover bid by Barrick Gold Corp., calling the offer “inadequate” and “opportunistic.”

Toronto-based Barrick had offered last month to buy Placer Dome for cash and stock in a deal that would create the world’s largest gold producer. At the time, a Barrick spokesman called the bid a “friendly unsolicited offer.”

Among the reasons for recommending against the offer, Vancouver- based Placer said Wednesday, is that its own gold production is expected to increase while Barrick’s production is predicted to decrease by 2010; Barrick’s offer doesn’t reflect an adequate premium for control of Placer; and the consideration offered represents a discount to the current trading price of Placer’s common shares.