6 May 2010

PNG's Lihir Gold Limited endorses takeover

10:56 am on 6 May 2010

Papua New Guinea's Lihir Gold Limited has endorsed a 8-point-79 billion US dollar takeover offer from rival Australian miner, Newcrest Ltd.

The Post Courier newspaper reports the new offer announced this week, is one Newcrest share for every 8-point-43 Lihir shares plus 22.5 Australian cents a Lihir share less any interim dividend paid.

This is an improved offer of 6-point-4 percent by Newcrest from its original offer and allows Lihir to continue existing discussions with rival bidders and retain the right to do so until June the 8th.

Soaring gold prices have some analysts calling Newcrest and Lihir potential takeover targets for gold majors looking to replace reserves.