March 4 - Newmont Mining Corp on Monday rejected rival Barrick Gold Corp's unsolicited offer, saying the all-stock proposal was not in the best interest of its shareholders as it was offered at a discount.
Barrick had offered 2.5694 of its common shares for each Newmont share, which translated to about $33 per Newmont share on Feb. 25, representing a discount to Newmont's trading price by about $3. Newmont shares closed at $33.82 on Friday.
Newmont said on Monday it would go ahead with its deal to buy smaller rival Goldcorp Inc, which it said is significantly more accretive to its shareholders compared to Barrick's proposal.
The Goldcorp deal would make the combined company the world's largest gold producer, ahead of Barrick.
However, Newmont said it submitted a joint venture proposal to Barrick for operations in Nevada.
According to the joint venture terms proposed by Newmont, Barrick will hold a majority 55 percent stake in the new entity, while both companies will have equal representation in the management and technical committees.
The new terms come after Barrick Gold Chief Executive Officer Mark Bristow raised concerns over management control in the proposed joint venture.
Newmont has 19 mines in Nevada, adjacent to Barrick's own operations.
(Reporting by Debroop Roy in Bengaluru; Editing by James Emmanuel)