Gold Fields says court OKs Bolivar deal

JOHANNESBURG – A Canadian court has approved South Africa’s Gold Fields Ltd’s plan to acquire Bolivar Gold Corp., and the deal is expected to be completed by the end of February, the firms said yesterday.

The decision to give the go-ahead was taken by the Supreme Court of the Yukon Territory, Gold Fields and Canada’s Bolivar said in a joint statement. The deal will help Gold Fields, the world’s fourth-largest producer, meet its target to increase foreign output by 1,5 million ounces by 2009.”The Supreme Court of the Yukon Territory of Canada has approved the plan of arrangement through which Gold Fields will combine Bolivar Gold with its international asset portfolio.The transaction is expected to be completed by the end of February 2006,” the companies said.The court was required to approve the takeover.Shares in Gold Fields rose 3,7 per cent to 140,50 by 0737 GMT, in line with a firmer gold sector index.Scion Capital LLC, a California-based fund, could not convince other shareholders to join it in voting down the US$360 million takeover in January, but took legal action against it.Scion, which owns 19 per cent of Bolivar, has argued that the takeover offer by Gold Fields undervalued Bolivar.The deal needed a two-thirds “yes” vote to succeed and got 77 per cent approval of common shares and 82 per cent of warrant and option holders for the offer of C$3,20 per share.Analysts welcomed the resolution of the contested deal.- Nampa-ReutersThe deal will help Gold Fields, the world’s fourth-largest producer, meet its target to increase foreign output by 1,5 million ounces by 2009.”The Supreme Court of the Yukon Territory of Canada has approved the plan of arrangement through which Gold Fields will combine Bolivar Gold with its international asset portfolio.The transaction is expected to be completed by the end of February 2006,” the companies said.The court was required to approve the takeover.Shares in Gold Fields rose 3,7 per cent to 140,50 by 0737 GMT, in line with a firmer gold sector index.Scion Capital LLC, a California-based fund, could not convince other shareholders to join it in voting down the US$360 million takeover in January, but took legal action against it.Scion, which owns 19 per cent of Bolivar, has argued that the takeover offer by Gold Fields undervalued Bolivar.The deal needed a two-thirds “yes” vote to succeed and got 77 per cent approval of common shares and 82 per cent of warrant and option holders for the offer of C$3,20 per share.Analysts welcomed the resolution of the contested deal.- Nampa-Reuters