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Newmont buys Battle Mtn
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June 21, 2000: 2:31 p.m. ET
North America's top gold producer expands in $557M stock swap
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NEW YORK (CNNfn) - Newmont Mining Corp. added to its empire Wednesday, announcing an all-stock deal for Battle Mountain Gold Co., making Newmont the third-largest mining company in terms of gold reserves.
Battle Mountain will become a wholly owned subsidiary of Newmont, North America's top gold producer and the No. 2 in the world.
Newmont (NEM: Research, Estimates) will swap 0.105 share of its stock for each of Battle Mountain's 230 million outstanding shares. Based on Newmont's closing price of 23-1/16 Tuesday, the deal is valued at about $557 million and represents a premium of about 25 percent for Battle Mountain shareholders.
"Both companies contribute low operating costs, high quality reserves and major operations that will complement each other's infrastructures in Nevada," Battle Mountain Chairman and Acting CEO Karl Elers said.
According to the companies, consolidation of their land positions in Nevada will result in annual cash savings of $30 million.
Denver-based Newmont had 1999 sales of nearly $1.4 billion and earned $24.8 million. The company employs about 9,300 people.
Houston-based Battle Mountain had revenue of $228.2 million in 1999, but lost more than $119 million.
In afternoon trading on the New York Stock Exchange, shares of Newmont fell 3/4 to 22-5/16 while Battle Mountain (BMG: Research, Estimates) rose 1/4 to 2-3/16. 
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Newmont
Battle Mountain
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