NEW YORK, March 21, 2019 /PRNewswire/ -- Paulson &
Co. Inc. ("Paulson"), a holder of 14.2 million shares of Newmont
Mining Corporation ("Newmont" or the "Company") (NYSE: NEM), today
sent a letter to Gary Goldberg,
President and CEO of Newmont indicating that Paulson
does not support Newmont's proposed acquisition of Goldcorp,
Inc. ("Goldcorp") (NYSE: GG, TSX: G) as currently
structured.
The letter outlines how the deal, under the current terms,
creates negative value for Newmont shareholders:
- The $1.5 billion premium to
Goldcorp shareholders is unjustified given Goldcorp's poor
performance;
- As currently structured, the synergies from the transaction
would only accrue to Goldcorp shareholders;
- The transaction would transfer a significant percentage of the
value created by Newmont's recently announced Nevada joint venture with Barrick to Goldcorp
shareholders instead of preserving this value for Newmont
shareholders; and
- Following the creation of the Nevada joint venture, Newmont is positioned to
create greater value as a stand-alone entity than if the
acquisition were completed under current terms.
Paulson would reconsider its position if the undue premium to
Goldcorp shareholders was eliminated and the full value of the
recently-announced Nevada joint
venture was retained for Newmont shareholders. Adjusting the
exchange ratio from 0.328 shares to a maximum of 0.254 would
accomplish those objectives and result in an accretive transaction
for Newmont shareholders. The full text of the letter is
attached to this press release.
About Paulson & Co. Inc.
Paulson, founded in 1994, is an investment management firm with
offices located in New York,
London and Dublin.
Contact Details
Marcelo Kim
Paulson & Co. Inc.
212-599-6628
Cautionary Statement
Paulson & Co. Inc. ("Paulson") is not soliciting votes in
connection with any pending transaction involving the companies
identified in this letter or press release.
Clients, funds and accounts managed by Paulson (the "Paulson
Clients") may from time to time beneficially own, and/or have an
economic interest in, shares of the companies discussed in this
letter and as a result, the Paulson Clients have an economic
interest in the forward-looking statements, estimates and
projections discussed above and their impact on the companies
discussed in this letter. The Paulson Clients are in the business
of trading – buying and selling – securities, and may trade in the
securities of the companies discussed in this letter. You should
also assume that the Paulson Clients may from time to time sell all
or a portion of their holdings of one or more of the companies in
open market transactions or otherwise (including via short sales),
buy additional shares (in open market or privately negotiated
transactions or otherwise), or trade in options, puts, calls, swaps
or other derivative instruments relating to some or all of such
shares, regardless of the views expressed in this letter.
The views contained in this letter and press release
represent the opinions of Paulson as of the date hereof.
Paulson reserves the right to change any of its opinions expressed
herein at any time, but is under no obligation to update the data,
information or opinions contained herein. Under no circumstances is
this letter or press release intended to be, nor should it be
construed as advice or a recommendation to enter into or conclude
any transaction or buy or sell any security (whether on the terms
shown herein or otherwise). This letter should not be construed as
legal, tax, investment, financial or other advice. Additionally,
this letter should not be construed as an offer to buy any
investment in any fund or account managed by Paulson.
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SOURCE Paulson & Co. Inc.