Newmont’s bid succeeds

Article Excerpt

NEWMONT CORP., $40.55, remains a buy for long-term growth and as a hedge against inflation. The company (New York symbol NEM; Shares o/s: 794.7 million; Market cap: $32.1 billion; TSINetwork Rating: Average; Dividend yield: 4.0%; www.newmont.com) reports that Austrailia-based Newcrest Mining has accepted its takeover offer. Newcrest operates gold mines in Australia, Canada and Papua New Guinea As a result, Newcrest shareholders will receive 0.40 of a Newmont common share. As well, Newcrest will pay its shareholders a special dividend of up to $1.10 a share. Based on current share prices, the new offer is worth $16.6 billion. Big acquisitions like this add risk, especially with little overlap between the two firms. However, Newcrest’s mining techniques will help cut the cost of Newmont’s new developments. Newmont remains a buy for long-term gains. gains…