Gold Fields Says No To Harmony

South African company Gold Fields rejected Monday a takeover bid by its compatriot Harmony Gold Mining Co. Ltd. to create the world's leading gold mining group, motivating that Harmony was not in its interests.

CEO of Gold Fields is likely to recommend the Company?s board to reject the Harmony offer.

"This offer is not in the interest of Gold Fields shareholders, its employees, or South Africa in general," company?s official said. "Harmony's true agenda has not be revealed. It's long on spin, factually inaccurate and grossly inadequate in terms of value."

Harmony offered a 29-percent premium for Gold Fields on the basis of 1.275 new Harmony shares for each Gold Fields share and 1.275 new Harmony American Depositary Shares (ADS) for each Gold Fields ADS.

"This transaction represents tremendous opportunities for stakeholders of both companies," said Harmony's chief executive Bernard Swanepoel in a statement.

Harmony said the offer had received the full backing of Russia's metal giant Norilsk Nickel, which owns 20 percent of Gold Fields.

Gold Fields however said the offer "is only in the interest of Norilsk Nickel and Harmony."