Newcrest Mining said yesterday it has finished due diligence on rival Lihir Gold and expects to complete the $9.5 billion deal by September.
It added that Lihir should now stop any discussions with third parties.
"As of today and in keeping with its obligations under the MIA (merger implementation agreement), Lihir is required to cease any discussions with third parties about a competing proposal and require the immediate return or destruction of confidential information provided to such parties," Newcrest said in the statement.
Newcrest’s comments came after it was suggested in morning media reports that at least two global gold majors, Newmont and Barrick, still might be interested in having a nibble at Lihir.
At least four of the world’s biggest gold producers have looked at the books of Lihir but Newcrest was seen as the only serious bidder.
Under its $9.5 billion takeover proposal, Newcrest would pay Lihir shareholders one Newcrest share for every 8.43 Lihir shares, plus 22.5c cash per Lihir share. Newcrest said the merger had compelling strategic logic and merit.
The merged group would be the fourth largest gold miner in the world with a market capitalisation of $25 billion and have one of the largest global gold reserves, with operations in five countries, but concentrated in Australia and PNG.
The directors of Lihir have unanimously recommended that shareholders vote in favour of the scheme of arrangement, in the absence of a superior proposal and subject to the independent expert determining that the scheme is in the best interests of Lihir shareholders.
Newcrest said the merger timetable would probably need to be extended by one to two weeks to enable the independent expert to complete its report.
The scheme meeting is likely to be held in August.
In a separate statement Lihir directors said:
"LGL welcomes Newcrest’s commitment to the proposed merger, which will create an attractive gold company with operations in five countries and strong growth opportunities.
"LGL also advises that the timetable for the proposed merger has been extended by 1-2 weeks.
"The Scheme Meeting is now expected to be held in August, with the merger scheduled for completion in September 2010, subject to the Independent Expert concluding that the Scheme is in the best interests of LGL shareholders and LGL’s shareholders approving the transaction."
The statement came after the world price jumped sharply on those fears offshore about Europe.
Overnight, August gold futures rose $US5.70 to settle at a record $US1,246.50 an ounce. That was after it reached an intraday trading record of $US1,254.50 an ounce.
Newcrest shares closed up 94c to $33.19 while Lihir shares rose 8c to $4.08.
