Gold Fields shares surged by almost 12% on the JSE on Friday as another contender emerged for Yamana Gold, which the miner hopes to acquire.
Gold Fields shares closed 11.23% higher, at R154.05.
Yamana Gold said in a statement it had received a superior offer from Agnico Eagle Mines and Pan American Silver. It gave Gold Fields five business days to amend the terms of its offer, although it was not forced to.
Gold Fields chief executive Chris Griffith said: "The emergence of another offer indicates that other mining companies see the inherent value in Yamana's assets. As we have always said, the complementary nature of Yamana's assets in the Gold Fields family will create significant near-term and long-term value for all shareholders.
"As a result, it is clear that Gold Fields' offer remains strategically and financially superior to the joint offer, with lower operational and execution risk and higher sustained returns, given Gold Fields enjoys the free cash flow, balance sheet profile and technical capabilities to unlock the full potential of Yamana's assets."
Gold Fields said it was consulting its financial and legal advisers, as it strongly believed the terms of its agreement with Yamana for the acquisition of all of the Yamana shares were demonstrably superior to the joint offer.
"Gold Fields will continue to work towards the completion of the transaction for the benefit of the shareholders of both companies, in accordance with the Arrangement Agreement," it said.
The miner said the meeting of Yamana shareholders to approve the transaction is scheduled for November 21 this year, while the meeting of Gold Fields shareholders to approve the transaction is scheduled for November 22.
BUSINESS REPORT