Newmont Mining Ups Bid for Normandy

Newmont Mining Corp. raised its offer for Normandy Mining Ltd. to $2.8 billion and won management’s support, trumping AngloGold Ltd. in a seven-week bidding contest for Australia’s top gold producer.

Denver-based Newmont’s promise to add 10 Australian cents to the cash and stock bid now worth $1 a share also won the backing of Normandy’s biggest shareholder, Franco-Nevada Mining Corp. AngloGold said it won’t raise its offer. Newmont’s offer is now 14% higher than its first bid Nov. 14, in a bet that gold prices will rise as companies shut money-losing mines.

Newmont’s shares, which have fallen 15% since the Normandy bid was announced, fell 8 cents to $19.01 on the NYSE.