Hanson Bids $4.8 Billion for Gold Firm

British industrial conglomerate Hanson PLC on Thursday announced a $4.8-billion bid for the battle-scarred British mining giant, Consolidated Gold Fields PLC, which just recently won a long battle to stay independent.

Consolidated Gold quickly labeled the Hanson offer as inadequate. But analysts said they expect Hanson to win the mining concern eventually with a sweetened offer.

Hanson, with interests ranging from building materials to food retailing, said its offer amounted to a cash payment of $22.31 per share for all of Consolidated Gold’s common stock.

The move came a month after Consolidated Gold fended off the biggest takeover bid in British financial history, forcing South African-backed Minorco to abandon its $5.5-billion hostile bid.

The bid by Minorco--Minerals and Resources Corp Ltd.--which triggered a bitter nine-month takeover battle, was blocked in the U.S. courts under antitrust rulings. It would have created the West’s biggest mining conglomerate.

That bid aroused fierce opposition from political groups that saw it as an effort by South Africa to expand its economic interests overseas.

Minorco, which wrested control of some 30% of Consolidated Gold shares in the course of the takeover battle, is the Luxembourg-based investment arm of South African businessman Harry Oppenheimer’s gold and diamond empire.

Thursday’s statement by Hanson sent shares in Consolidated Gold rocketing $3.13 (2.02 pounds) to close at $22.55 (14.55 pounds) a share.

It said Minorco had agreed to accept the offer for its share in Consolidated Gold stock. Hanson’s chief, Lord Hanson, said in a statement: “This is a full and fair price which we are confident will be acceptable to the shareholders of Cons Gold.”

Consolidated Gold said in a statement that the cash offer from Hanson was “substantially below” the Minorco bid.

But there are indications that the bid will be settled in an amicable fashion once both sides have agreed upon a price.

Consolidated Gold said its chairman, Rudolph Agnew, would be holding talks shortly with Hanson. It advised Consolidated Gold shareholders to take no action on the offer.

A source close to Consolidated Gold told Reuters that Lord Hanson and Sir Gordon White, chairman of Hanson’s U.S. subsidiary, Hanson Industries, met Agnew on Wednesday night to tell him that Hanson would be announcing the bid.