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Minorco Loses Round: A federal appeals court...

Minorco Loses Round: A federal appeals court upheld a lower court’s injunction barring Minorco S.A. and two other South African entities from proceeding with a $3.8-billion hostile takeover bid for Consolidated Gold Fields PLC, the second-largest gold producer in the Western world. The same three-judge panel of the 2nd U.S. Circuit Court of Appeals, sitting in Manhattan, also reversed the district court’s ruling that it lacked jurisdiction in Consolidated Gold’s claim of securities fraud by the South African-controlled Minorco. Only 1.5% of the stockholders involved are in the United States. Minorco is seeking the 70.4% stake in Consolidated Gold Fields that it does not already own.


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