While shareholders are happy that the Newcrest board rejected Newmont’s takeover offer, they reportedly want to see more fighting spirit.
According to a recent poll conducted by the Australian Financial Review’s Street Talk, Newcrest investors are “disappointed” with the board and would like to see more significant future plans discussed.
The plans could include expansion projects, asset sales or something larger that could see Newmont increase its offer to a value that Newcrest would accept.
With Sherry Duhe remaining as Newcrest’s interim chief executive officer, shareholders would also like to see the company make its management team more permanent.
Newcrest and Newmont will both be in attendance at the annual BMO Capital Markets conference in Florida this week, which the Australian Financial Review reports is the perfect time to “stiffen up the rhetoric inside investor meetings”.
Newmont chief executive officer Tom Palmer has deflected analyst questions about the takeover bid, but did break his silence on the rejection last week, saying he was disappointed in the decision.
“Our proposed combination would strengthen our established position in Australia, creating efficiencies and value with a shared workforce and large-scale supply-chain optimisation,” Palmer said.
“It would build upon the district potential in British Columbia’s highly prospective golden triangle through a combination of operating mines and development projects that would deliver value through shared technology, local capabilities, and orebody experience.”
Newmont has yet to increase its $24.45 billion offer, but Newcrest has signalled it is happy to leave the door open to a higher bid.