Homestake Acquisition Clears Regulators

San Francisco-based Homestake Mining Co. said its planned acquisition of Santa Fe Pacific Gold Corp. cleared government antitrust review. Meanwhile, Santa Fe ponders a higher offer from Newmont Mining Corp. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act has expired without a request for additional information. Newmont and Homestake, the largest and second-largest U.S.-based gold producers, respectively, are fighting for Santa Fe Pacific Gold and its vast land holdings in gold-rich northern Nevada. The boards of Homestake Mining and Santa Fe had agreed to the transaction. However, Santa Fe has yet to make a decision on a higher bid from Denver-based Newmont, made after the Homestake-Santa Fe agreement was reached. Earlier this month, Homestake made a stock-swap bid for Santa Fe to gain control of its vast land holdings in gold-rich northern Nevada. Homestake’s offer to exchange 1.115 of its shares for each Santa Fe share was valued at $17.42 when it was made. Newmont shares lost 25 cents to close at $40; Santa Fe shares lost 12.5 cents to close at $15.625; Homestake lost 12.5 cents to close at $14. All trade on the NYSE.