November 14, 2016 / 3:02 PM / 2 years ago

Gold Fields confirms Kirkland Lake bid, Kirkland shares jump

VANCOUVER, Nov 14 (Reuters) - Gold Fields Ltd said late on Sunday that it had made three successive takeover proposals jointly with Silver Standard Resources Inc for Canadian miner Kirkland Lake Gold Inc, confirming a Reuters report on Friday.

At Monday’s open, Kirkland Lake’s shares, which had been halted for much of the session on Friday, jumped 5 percent to C$8.45. That was against the trend of other gold stocks, which were weaker due to a lower gold price.

Reuters reported that South African-based Gold Fields and Canadian miner Silver Standard had made the joint, unsolicited bids for Kirkland and recently sweetened their offer to about C$1.4 billion.

Kirkland Lake is a mid-sized producer operating four gold mines and two mills in a bullion-rich belt of northeastern Ontario.

Kirkland on Friday said that after advice from its legal advisers and three separate financial advisers, it concluded the proposal was “not financially superior” to its own plan to acquire Newmarket Gold Inc for about C$1 billion in stock.

Newmarket Gold’s shares were down 2 percent at C$3.29 on Monday.

Kirkland also “strongly recommended” that shareholders vote in favor of the Newmarket deal. Investor advisory firms ISS and Glass Lewis have recommended to shareholders of Kirkland Lake and Newmarket that they vote for the deal.

The latest Gold Fields-Silver Standard offer for Kirkland Lake represented a premium of more than 50 percent of Kirkland’s value on Thursday. Its shares jumped as much as 8 percent on Friday, after the Reuters report, to hit C$8.17 before being halted on the Toronto Stock Exchange. (Reporting by Nicole Mordant in Vancouver; Editing by Will Dunham)

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