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Dealmaker Hannam sues Randgold for up to $18 mln over Barrick merger work

Dealmaker Ian Hannam is taking legal action against Randgold Resources for up to $18 million he states he is owed for deal with its acquisition by Canada's Barrick Gold, informing a London court on Friday that the gold miner reneged on their contract.

Hannam was previously one of JPMorgan's top rainmakers and nicknamed the king of mining for his record of brokering offers in the resources sector, including the merger of BHP Billiton in 2001 and the 2012 merger of Glencore and Xstrata.

His reputation was, nevertheless, dented more than a years back when he was fined 450,000 pounds (now approximately $574,000) for poorly revealing information, though his actions were not found to do not have integrity.

Hannam went into the witness box today to give evidence for his advisory shop Hannam & & Partners 'case over an arrangement he states was reached quickly before Barrick's 2018 acquisition of Randgold, which states the suit is baseless.

Hannam & & Partners states it was guaranteed a minimum of $10. million, with the figure to increase if the deal was worth more. than $10 billion.

Its legal representatives say Hannam brokered discussions including. Randgold's then CEO Mark Bristow and Barrick's then executive. chairman John Thornton, which caused the merger.

After Barrick and Randgold concurred an offer eventually worth. some $18 billion, Hannam requested for $18 million however was rebuffed.

The Barrick-Randgold merger has been extremely effective,. Hannam & & Partners 'lawyer Matthew Hardwick said on the very first day. of the trial on Wednesday, adding: However for Ian Hannam's vision,. it would not have actually taken place.

Randgold's lawyer George Spalton, however, stated there was no. written evidence of the supposed contract and that $18 million. was roughly what Randgold paid its financial advisors, Barclays. and Canadian Imperial Bank of Commerce.

Spalton played Hannam a voicemail left by Bristow, now. Barrick's CEO, quickly after Hannam & & Partners sent out an $18. million billing, which Bristow said was completely. less than professional.

Spalton also referenced Hannam's 2012 fine for sending out 2. emails on a customer's behalf, suggesting Hannam had a credibility. he might not be trusted with secret information which. suggested Barrick did not want him involved.

Hannam rejected that, adding he had actually accepted his fine and been. allowed to open Hannam & & Partners by Britain's Financial. Conduct Authority.

I have actually apologised and I have actually taken my penalty, he said.

The trial is because of conclude next week with a judgment. expected at a later date.

(source: Reuters)