Placer Dome Plans to Acquire Bre-X Minerals

Placer Dome Inc. plans to acquire Bre-X Minerals for about $5 billion in stock, moving to replace Barrick Gold Corp. as Bre-X’s partner in developing the world’s largest gold find in Indonesia. The unsolicited bid offers Bre-X shareholders a 1-for-1 stock swap that would give Bre-X between 45% and 55% of Placer Dome. Analysts said the proposal is an attempt to force a bidding war for Bre-X. The Indonesian government has ordered Bre-X to sell a 75% stake in the Busang find to Barrick. Toronto-based Barrick is “almost certain to counter in some way if there is a fear that Placer would have a legitimate go” at buying Bre-X, whose primary asset is Busang, analyst John Hainey said.