Newcrest Mining wins in a merger of equals

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Newcrest Mining has helped scuttle talks between St Barbara and its $350 million takeover target Catalpa Resources by agreeing to vend two Queensland goldmines into a merger between Catalpa and Conquest Mining in return for becoming the biggest shareholder in the new company.

The complex plan -- which includes a $150m rights issue once the merger and asset sale are complete -- would create a $1.18 billion miner with five gold projects in Queensland and Western Australia, helping fill what many see as a dearth of opportunities to invest in mid-tier gold companies. The agreed "merger of equals" between Catalpa and Conquest, announced yesterday, would see Catalpa pay Conquest 0.3 shares for each Conquest share, implying a 13.7 per cent premium for Conquest, based on share prices before the deal was announced. As a result of the deal, Catalpa said it had terminated discussions with St Barbara about the latter's scrip and cash offer, which Catalpa had previously described as opportunistic...