AurionGold, Australia's largest independent gold producer, has said that it has rejected Placer Dome's increased $870 million takeover bid because it is still not high enough.
The Vancouver based Placer this week added 35 Australian cents a share in cash to its offer of 17.5 Placer shares for every 100 shares in AurionGold. The Canadian miner has received acceptances from holders of 10 percent of AurionGold shares.
Placer wants to buy AurionGold to boost gold production by a third and compete with rivals such as Newmont Mining Corp. and Barrick Gold Corp., which spent $7.5 billion buying mines in the past year.
“Placer Dome is offering an unacceptable price for your company, having regard to the quality of AurionGold's assets and its future prospects,” AurionGold Chairman Dick Warburton said in a letter to shareholders lodged with the Australian Stock Exchange.