Panel Publishes Reasons For Decision in Normandy No.5 - Broker Handling Fees [31/01/2002] The Takeovers Panel

Thursday, 31 January 2002


The Panel advises that it has today published the reasons for its decision in the matter of Normandy No. 5. The application had been made by Newmont Mining Corporation concerning the modified handling fees that AngloGold Limited announced on 3 December 2001. The modified handling fees were to be payable to brokers whose clients accepted AngloGold's offer for Normandy Mining Limited on or before 11 December 2001.

The Panel decided on 6 December 2001 that the modified handling fees proposed by AngloGold would be likely to have a coercive effect on brokers to induce Normandy shareholders to accept AngloGold's bid prior to the close of its bid. This would also have been 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.

The Panel declined to make a declaration following discussions with AngloGold resulting in it providing an undertaking to the Panel to withdraw the modified handling fee arrangement.

The Panel's reasons can be accessed via its website at

Sitting Panel

The sitting Panel in this matter was 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