Normandy No.5 Decision - Broker Handling Fees [06/12/2001] The Takeovers Panel

Thursday, 06 December 2001


The Panel advises that it has reached a decision on the application by Newmont Mining Corporation concerning the modified handling fees that AngloGold announced on 3 December. The modified handling fees were to be payable to brokers whose clients accepted AngloGold's offer for Normandy on or before 11 December 2001.

The Panel has decided that the modified handling fees proposed by AngloGold would be likely to have a coercive effect on Normandy shareholders, inducing them to accept AngloGold's bid prior to the close of its bid. This would also be prior to Normandy shareholders having the opportunity to consider the recommendation of the Normandy Board in response to AngloGold's revised offer. The Panel considered that this was against the intent and policy of the takeovers provisions of the Corporations Act. Accordingly, the Panel considered that the modified handling fees would give rise to unacceptable circumstances.

Following discussions with the Panel, AngloGold has undertaken to the Panel to withdraw the modified handling fee arrangement. Accordingly, the Panel considers that it would not be in the public interest to make a declaration of unacceptable circumstances in relation to the modified handling fees.

The Panel's reasons for decision will be available shortly on the Panel's website at

Sitting Panel

The sitting Panel in this matter is constituted by Mr David Gonski (sitting President), Ms Meredith Hellicar (sitting Deputy President) and Ms Ilana Atlas.

Nigel Morris
Director, Takeovers Panel
Level 47 Nauru House, 80 Collins Street, Melbourne VIC 3000
Ph: +61 3 9655 3501