 Gold Fields says Harmony undervalued its assets |
South African gold producer Gold Fields has rejected a $8.2bn (�4.5bn) bid by rival Harmony which would have created the world's largest gold company. Gold Fields said the bid was not attractive to its shareholders and it intended to complete an agreed merger with Canada's Iamgold.
It said the unsolicited bid had "significantly undervalued" its assets.
Harmony's offer is dependent on Gold Fields' shareholders voting against the Iamgold deal.
Russian interest
Harmony had offered 1.275 shares in the new company for each Gold Fields share.
Gold Fields said the Iamgold transaction would provide it with "full access to international debt and capital markets".
Chief executive Ian Cockerill described Harmony's bid was "an opportunistic and desperate attempt".
Russia's Norilsk Nickel owns a 20% stake in Gold Fields and had backed Harmony's bid.
Norilsk, which is controlled by Vladimir Potanin - one of Russia's biggest tycoons, was reported to have been angered by Gold Fields' plans to merge with Iamgold, partly as it had not been informed of the proposal.
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