Newcrest (ASX:NCM) Increases Lihir (ASX:LGL) Bid to $8.8 Billion, Agrees to Deal

After increasing their bid for Lihir Gold (ASX:LGL) (TSE:LGG) to $8.8 billion, Newcrest Mining (ASX:NCM) agreed to buy the gold mining company, which would make them the fifth-largest gold producer in the world.

Terms of the offer are one share of Newcrest for every 8.43 Lihir shares, plus 22.5 cents. That also would be minus and dividend paid out in the first half. The original offer from Newcrest was one share for every 9.5 Lihir shares.

Shareholders in Lihir have a choice of increasing the amount of cash they receive or the number of shares.

Lihir has the option of negotiating with other companies through June 8.

Other mining companies that may be interested in Lihir are Newmont Mining (NYSE:NEM) (ASX:NEM) and Barrick Gold (TSE:ABX) (NYSE:ABX).