Newcrest demands entry to Lihir’s data
Newcrest Mining yesterday insisted that Lihir Gold should let them gain entry to any data of the company.
Newcrest said that its consultation meetings with its shareholders for the past two weeks have not encouraged them to increase the bid for Lihir.
"Our consultations confirm our view that the terms of our revised (from an earlier bid) proposal are full and fair," Don Mercer of Newcrest stated in the letter, which was also released to the stock exchange.
Mercer added that the company would take any necessary action to revise the value of the deal so Lihir shareholders can alter its ratio of scrip and cash.
"We would reasonably expect to be given access to that data room to assist our ongoing review," Mercer said in his letter.
Newcrest also requested that no other parties should be given due diligence access with the same terms set for Newcrest.
Lihir did not reply to the letter yesterday; however, the letter is given due consideration by the board.
Media reports have stated that Lihir is testing Newcrest to offer a sweetened deal to gain access to any data room.
Newcrest offered a cash and scrip bid for Lihir last month, valued at $9.2 billion.
Lihir rejected the bid, stating that it was too low.
Newcrest operates both gold and copper mines in Australia, Indonesia, Papua New Guinea and Fiji.
Lihir manage its mines n Australia, Papua New Guinea and the Ivory Coast in West Africa.
Both Newcrest and LIhir have a market capitalization at $16.3 billiion and $9.2 billion respectively.