Hot Stocks 20 April 2010
Newcrest Mining (NCM) is a leading international gold company and is Australia’s largest gold producer. It also ranks amongst the top 10 gold miners in the world.
NCM has sent a letter to Lihir Gold’s (LGL) chairman, Ross Garnaut, offering to improve the terms of its recent takeover offer.
After canvassing the views of LGL’s shareholders, NCM offered to improve the scrip component of the offer but not the offer price.
NCM maintained the belief that its offer price was full and fair, and warned LGL’s share price would come under pressure if its offer was spurned.
Separate reports also suggested that international gold-miner Newmont Mining (NEM) could be set to make an offer for LGL.
If this is true, LGL could be attempting to ignite a bidding war in order to extract a higher takeover price from potential suitors.
Australian share price for NCM has made a decent rally since the beginning of February this year and may be one of the stocks to buy.