This Article Originally was Published here: http://www.wealthdaily.com/articles/african-barrick-gold-lon-abg-sale-falls-through/3891
In a rough bit of news for at least two gold companies, AngloGold Ashanti (NYSE: AU) saw its chief executive depart for Anglo American (LON: AAL) while African Barrick Gold (LON: ABG) dropped by 20 percent after takeover talks collapsed. The company was the subject of talks between its parent company, Barrick Gold (TSX: ABX), and China National Gold Group.
Back in August, Barrick had mentioned that it was working toward selling its 73.9 percent stake in African Barrick to the Chinese company, but it seems there’s been a disagreement over pricing.
African Barrick has responded by asking its management to undertake an operational review in an effort to increase shareholder value. Total dividend is expected to remain at 2011’s level of $67 million despite the gold company’s decreased performance over 2012.
The Guardian quotes chief executive Greg Hawkins:
“Whilst the discussions between China National and Barrick have not lead to a transaction, the process has re-emphasised the fundamental long-term value of African Barrick's portfolio and the scarcity of large scale producing opportunities to enter the gold market in Africa.”
African Barrick’s shares on the FTSE 250 dropped by 91 pence to reach 353 pence.
Shares were back up 6.73% on Wednesday morning to 375.80 pence.
This Article Originally was Published here: http://www.wealthdaily.com/articles/african-barrick-gold-lon-abg-sale-falls-through/3891
African Barrick Gold (LON: ABG) Sale Falls Through originally appeared in Wealth Daily. Wealth Daily, a free daily newsletter, offers practical investment analysis and contrarian stock market advice.