Australia’s Gold Road hits record high on rejecting Gold Fields’ $2.1 bln offer

Investing.com-- Shares of Australia’s Gold Road Resources Ltd (ASX:GOR) surged to an all-time high on Tuesday after the company rejected a $2.1 billion takeover bid from South Africa’s Gold Fields Ltd (JO:GFIJ), calling the proposal "highly opportunistic" and undervaluing its assets.

Gold Road after market close on Monday confirmed it had turned down Gold Fields’ non-binding offer of A$3.05 per share, which included a fixed A$2.27 per share plus a variable component tied to its stake in De Grey Mining Ltd (ASX:DEG).

As of 00:38 GMT on Tuesday, Gold Road shares jumped 13.3% to A$2.775, their highest level ever.

Gold Road said the bid failed to account for the potential underground expansion of its Gruyere gold mine, a joint venture with Gold Fields (NYSE:GFI).

Instead, Gold Road proposed acquiring Gold Fields’ 50% stake in Gruyere, an offer that was rejected.

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