Australia's Northern Star rejects $27 billion takeover bid from South Africa's Gold Fields

By Reuters News

Sept 28 (Reuters) - Australia's Northern Star Resources NST.AX said on Monday it rejected an unsolicited takeover proposal from South Africa's Gold Fields GFIJ.J that valued the gold miner at A$38.43 billion ($26.95 billion).

Gold Fields' offer implied a value of A$27.00 per Northern Star share, representing a 22% premium to the stock's last close.

Under the deal, Northern Star shareholders would have received 0.3125 new Gold Fields shares and A$7.25 in cash for each Northern Star share.

The Perth-based gold miner said the proposal would have left shareholders with significant exposure to Gold Fields stock, which it said carried a higher jurisdictional risk profile than Northern Star's existing asset base.

Gold Fields did not immediately respond to a request for comment.

Northern Star appointed a new chief executive in July as the miner faced pressure from activist investor Elliott Investment Management for a strategic review.

($1 = 1.4261 Australian dollars)

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