Lihir Gold (ASE:LGL) Rejects Newcrest (ASE:NCM) Bid

Newcrest fails to acquire Lihir Gold

In the latest of many attempts to increase scale through acquisition among Australian gold companies, this one didn't pan out, as Lihir Gold (ASE:LGL) rejected a $8.45 billion offer from competitor Newcrest Mining (ASE:NCM).

Much of the attempts at consolidating Australian gold mining companies comes from the growing demand from China and India, which seem to have an insatiable appetite for gold and other metals at this time.

The offer by Newcrest was a hefty 28 percent premium over Wednesday's closing share price of Lihir, but Chairman Ross Garnaut said, "It did not include a sufficient premium for control."

Lihir produced 1.12 million ounces of gold in 2009 and is expected to be under that total in 2010, with projections from between 960,000 ounced to 1.06 million ounces.