Newmont Offers $2 Billion for Santa Fe

Newmont Mining Corp. said it offered to acquire Santa Fe Pacific Gold Corp. for $2 billion in a tax-free stock swap that would create the largest gold company in North America. Denver-based Newmont said it sent a letter to the Santa Fe board offering 0.33 share for each share of the Albuquerque, N.M.-based company, one of the largest gold mining companies in North America. Based on Newmont’s Thursday closing stock price of $47.13, down 37.5 cents, the offer would be worth $15.55 a share to Sante Fe stockholders. Santa Fe’s stock was at $13.38 when trading in both issues was halted on the New York Stock Exchange pending the proposed merger announcement. It jumped $3 to $14.88. In a brief statement, Santa Fe “acknowledged receipt” of the offer and made no further comment. Santa Fe has mines in Nevada and California and exploration offices and projects worldwide.