P.M. BRIEFING : Low Bid Tarnishes Gold Firm Stock

Share prices of Consolidated Gold Fields, the world’s No. 2 gold producer, dropped sharply today following the British mining conglomerate’s decision to accept a lower-than-expected bid from Hanson PLC.

Clearing the way for the largest corporate takeover in British history, Gold Fields’ board accepted the revised $5.6-billion offer from Hanson Tuesday night. The bid values each Gold Fields share at $24.50--$22.90 in cash and $1.60 in a special dividend and Hanson share warrants.

Gold Fields shares dropped 24 cents to $23.57 in early trading today, reflecting disappointment in the agreed offer.

“It’s a good deal for Hanson,” Huw Williams, mining analyst at Kleinwort Benson Securities, said today. “Shareholders were really given no option--no other bidder would come in--so they’ll probably get rid of their shares and be happy about it.”