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Gold Fields' $2 billion offer to buy Gold Road Resources is rejected by Australia's Gold Road Resources

Gold Fields' $2 billion offer to buy Gold Road Resources is rejected by Australia's Gold Road Resources

Gold Road Resources, a South African company that competes with Gold Fields in the mining industry, has refused a buyout offer of A$3.3 billion (2.07 billion dollars) from its larger competitor.

Gold Road's shareholders would have received A$3.05 for each share under Gold Fields offer made earlier in the month. This represents a premium of 24.5% over Monday's closing prices.

Gold Fields' offer was to consolidate ownership of the Gruyere Gold Mine in Western Australia. This joint venture between Gold Road and Gold Fields.

Gold Fields, a South African gold miner, said that despite subsequent discussions it was disappointed by the Gold Road Board's failure to constructively engage on key elements of its Proposal.

Gold Roads, a Johannesburg-based company, expressed an interest in purchasing Gold Fields' 50% share in Gruyere, but the Johannesburg-based firm declined.

Gold Fields said it also intended to vote for Northern Star Resources $3.3 billion purchase of De Grey Mining which counts Gold Road, as its largest shareholder, as part of their offer.

A spokesperson for Gold Road said that a statement would be issued shortly.

(source: Reuters)