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.
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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.