Shares of the gold mining company, Newmont Mining Corp (NYSE: NEM) tanked in morning trading on Monday after it confirmed a takeover bid for Newcrest Mining, based out of Australia.
According to this offer, Newmont has proposed to exchange 0.380 Newmont shares for every Newcrest share. This would result in the combined company being 70% owned by Newmont while the remaining 30% is owned by Newcrest.
Tom Palmer, President and CEO of Newmont commented, “The proposed transaction would join industry-leading portfolios of assets and projects to create long-term value across the combined global business, and we welcome the consideration of Newcrest’s Board of Directors.”
Analysts are cautiously optimistic about NEM stock with a Moderate Buy consensus rating based on four Buys and four Holds.