(Adds Newmont CEO interview comments)By Ernest ScheyderHOLLYWOOD, Fla., Feb 25 (Reuters) - Barrick Gold Corp's chief executive defended the world's largest goldproducer's hostile $18 billion bid for Newmont Mining Corp , saying on Monday the deal is "logical" for an industrybattling high costs and depleting resources.Barrick, which recently completed a $6.1 billion acquisitionof Africa-focused Randgold Resources, launched its all-stock bidon Monday, encouraging the U.S. rival to ditch a previouslyannounced $10 billion takeover of Canada's Goldcorp Inc ."This gold industry needs to become more relevant toinvestors," CEO Mark Bristow said in an interview on thesidelines of the BMO Global Metals & Mining Conference inHollywood, Florida.Bristow, known for his straight-talking and hands-onapproach in running Randgold before the merger, said this deal"drives a further rationalization in our industry." Gold mergers and acquisitions have been scarce in recentyears as companies focused on cutting costs in the face ofinvestor criticism about capital management. But the need tobolster shrinking gold reserves to boost growth and takeadvantage of rising prices are providing the impetus forconsolidation.Barrick's offer for Newmont has pushed the combined value ofunsolicited M&A deals globally to $48.2 billion so far thisyear, the highest since 2006, according to data from Refinitiv.Newmont said it had reviewed and rejected possible dealswith Barrick and said its own $10 billion planned purchase ofGoldcorp made more business sense."One has to question what the true motives behind goinghostile are: Whether it's really just to get bigger or it's allego-driven," Newmont CEO Gary Goldberg told Reuters at the BMOconference, adding Newmont shareholders "don't understand it(and) don't see the value potential."Barrick said its acquisition of Newmont was contingent onthe company scrapping the deal to buy Toronto-listed Goldcorp,adding that its offer was a "significantly superior" option forNewmont shareholders.Goldberg said earlier on Monday a joint venture was a betterway to extract value from the two companies' mines in Nevada,the largest producer of gold and silver among U.S. states.Newmont has 19 mines in the state, adjacent to Barrick's ownoperations. Reuters had reported in November that the miners were in talks to combine theiroperations in the state.Talks of a joint venture fell through over Newmont's demandfor management control, Barrick's Bristow said on a conferencecall with analysts. The deal marks Bristow's first majorstrategic move at Barrick since taking the top position inJanuary.Newmont's board of directors would "fully evaluate theBarrick proposal and respond in due course," the company said.Gold sector deals took off when Barrick paid $6.1 billionfor rival Randgold, a deal that closed last month. That set offa fresh wave of bids, including Newmont's offer for smallerminer Goldcorp, which would make the Colorado-based firm theworld's top gold miner if it closes as planned next quarter.Shares of Newmont fell 0.7 percent to $36.22 atmid-afternoon, while Barrick's Toronto shares dropped 2.7percent.Barrick is offering 2.5694 of its common shares for eachNewmont share. That translates to about $33 per Newmont share,valuing the company at $17.85 billion, according to Reuterscalculations.The deals come as gold prices are rising, with gainsof some 11 percent since October.Newmont shareholders would hold about 44 percent of thecombined company's outstanding shares. Barrick said the new company would match Newmont's annualdividend of 56 cents per share which, based on the offer, wouldrepresent a pro-forma annual dividend of 22 cents per Barrickshare.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^BREAKINGVIEWS-Hostile gold merger has only glimmer of appeal ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by John Benny in Bengaluru; Editing byRichard Chang and Phil Berlowitz)
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