Barrick seeks Placer Dome in $9.2B US takeover bid

CBC || November 1, 2005

[KDR: Related Article - Killing For Gold is Good Business]

Barrick Gold Corp., Canada's top gold producer, is taking aim at rival Placer Dome with a $9.2 billion US takeover offer that would make Barrick the biggest gold company in the world.

Barrick (TSX:ABX) is offering shareholders of Placer Dome (TSX:PDG) $20.50 US a share in a combination of cash (13 per cent) and Barrick stock (87 per cent).

On the TSX, Placer Dome shares surged Monday, jumping almost 20 per cent, or $3.84, to close at $23.33. Barrick shares fell $2.19 to end the trading day at $29.65.

Toronto-based Barrick has also struck a deal to sell some of Placer Dome's subsidiaries and a stake in a development project in the Dominican Republic to Goldcorp Inc. (TSX:G) for $1.35 billion US in cash.

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Goldcorp was up 90 cents at $23.76.

"There is a natural fit between key Placer Dome assets and our own," said Barrick CEO Greg Wilkins.

"We have an established track record of integrating quality assets, aggressively developing projects and tapping the skills of talented employees such as Placer Dome's," Wilkins said.

Barrick said a takeover of Placer Dome would create a company with 149.8 million ounces in proven and probable gold reserves, plus estimated production of 8.3 million to 8.4 million ounces of gold for 2005.

"The combined company becomes the industry leader in reserves," Wilkins said.

Placer Dome issued a short statement saying its board would consider the proposal and would make a statement "in due course."

Barrick said it will ask for a list of Placer Dome's shareholders Monday and expects to mail the details of its takeover bid to Placer Dome shareholders "as soon as possible."

Placer Dome has not yet responded to the Barrick offer.

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