Australia’s largest gold producer NCM delivered a solid report last week but at the same time, they rejected a takeover offer from Newmont (NEM US) although they did offer the suitor the ability to look into its financials to try and entice a higher bid – at least encouraging that there’s probably nothing too untoward lurking in the shadows of its accounts, but less encouraging that no further announcement has been made about this arrangement.
NB After recent weakness across global gold stocks the all-script bid by Newmont (NEM US) is now only worth $25.15, we were looking for something in the $28-30 range.
- We like NCM into current weakness believing Newmont is likely to increase its bid of 0.38 NEM shares for every NCM share.
MM likes NCM around the $23 area
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