Newmont Raises Offer for Santa Fe Pacific

Newmont Mining Corp. boosted its hostile takeover bid for Santa Fe Pacific Gold Corp. of Albuquerque to $2.2 billion in stock in an attempt to derail the company’s proposed merger with San Francisco-based Homestake Mining Co. Santa Fe agreed Dec. 9 to be acquired by Homestake in a stock deal then valued at $17.42 a share, or $2.3 billion. But Homestake’s bid of 1.115 of its shares for each Santa Fe share is now worth only about $15.05 a share, or $2 billion. Denver-based Newmont said it was increasing its offer from 0.33 share of its stock to 0.40 share, worth $16.50, for each of Santa Fe’s 133 million shares. Santa Fe stock rose 87.5 cents to close at $15.125, Newmont fell 75 cents to $40.50 and Homestake added 56.25 cents to $13.69, all on the NYSE.