Northern Star Rejects $27B Gold Fields Bid, Shares Plunge 16%
GFI is trading near its 52-week low of $31.11 (9.5% above the low).
Summary
Northern Star's board unanimously rejected Gold Fields' unsolicited A$38.7B ($27.1B) cash-and-stock takeover proposal, calling it opportunistic and below fundamental value. The rejection sent Gold Fields shares down over 16% in premarket trading. The proposal, made on September 14, offered 0.3125 GFI shares plus A$7.25 cash per Northern Star share, implying a 22% premium at the time, but the premium had shrunk to 14% by September 25 due to Gold Fields' stock decline. Northern Star cited the high stock component (73%) and Gold Fields' higher jurisdictional risk as key reasons for rejection. Gold Fields says it remains open to constructive dialogue. This follows the 6-K filed earlier today disclosing the proposal; the rejection is a material negative development for GFI's growth ambitions.
At the time of this announcement, GFI was trading at $34.05 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $35.6B. The 52-week trading range was $31.11 to $61.64. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Benzinga.