It is a major week for the Australian market, with the Reserve Bank of Australia (RBA) set to release its latest interest rate decision at 2:30pm on Tuesday. Another interest rate hike is expected.
On Thursday, the central bank will also release its latest ‘Financial Stability Review’.
Bloomberg reports gold miner Gold Fields (NYSE:GFI) has approached Northern Star Resources (ASX:NST) with a takeover proposal, which Northern Star has rejected.
Northern Star confirms the approach in an ASX release this morning. The proposal values the company at a 15% premium to its 30-day volume-weighted average price.
In the release, Northern Star Chairman Michael Chaney says:
“Gold Fields has sought to acquire one of the world’s premier gold portfolios at a price that falls well short of what the board considers to be its fundamental value and at a highly opportunistic time. Furthermore, Gold Fields has asked our shareholders to take nearly three-quarters of the consideration in Gold Fields stock, which carries a meaningfully higher jurisdictional risk profile than the exposure they hold today.”
Northern Star’s recent history is tumultuous, with multiple downgrades. NST shares are up 8.6% in first hour of today’s trade.
Write to Callum Newman at Mining.com.au
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