The Canadian company for gold Kinross Gold announced that it planned acquisition of Red Back Mining. This will be created one of the largest companies for the extraction of gold in the world. Kinross Gold currently owns 9 percent of the capital of Red Back, as the remaining 91 percent is planned to be paid about 7 billion dollars. This will be done by paying 30.50 Canadian dollars a share capital of Red Back, the payment will be through shares and warrants. The proposed price is a premium of 17% versus the current price of 26.02 Canadian dollars a share. Red Back has mines in Ghana and Mauritania, which will give access to Kinross West Africa. Together with them, the company will have 10 mines and four projects for gold, located in eight different countries. Kinross currently has projects and mines in Canada, USA, Brazil, Chile, Ecuador and Russia. The estimated total production of the company for 2010 is estimated at 2.6 to 2.7 million fine troy ounces of gold. Analysts have forecast that by 2015 the yield could reach 3.5 million fine troy ounces, but according to Kinross potential post-acquisition will be much higher. Finalisation of the deal would create the fourth largest market capitalization company in the sector of mining gold. On top positions in the ranking are Barrick Gold, Goldcorp and Newmont Mining. It is expected that after the transaction the shareholders of Red Back to possess about 37 percent of the capital of the new company. To do so, for each share of Red Back will receive 1.778 ordinary shares of Kinross, and warrants to acquire 0.11 shares yet.
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The vice President of Berkshire Hathaway Charlie Mangar told Wall Street Journal (WSJ), according to him joining the Chinese investor Li Lu to the investment team in the company of Buffett is a “foregone conclusion”. Confirmation of Mangar Lu made the first name that is voted as part of a team that will take investment decisions by the legendary investor. Buffett himself suggests that this could happen before a possible withdrawal. “I like the idea of attracting investment managers, while I’m still here,” he said. Although Buffett continually repeats that have not yet considered to be withdrawn, he has suggested that after leaving his post he will probably be divided into operating and investment. Buffett’s view of the team is generally in investment decisions, including the salaries, not to create internal competition between managers. According to Lu is suitable because it can think about problems that did not exist before. He also knew how to swim upstream, which proved to buying shares of BYD, when they were sold on the market and it is also a big fan of Berkshire. “We do not want people without particular regard to the company,” said Buffett. According to the forex broker reviews the 44-year-old Lu is one of the leaders of student protests in Tiananmen Square in 1989. He is close friends with Mangar and his interest in attracting Chinese manufacturer BYD electric cars two years ago.
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The bankers who spent last year lobbying against reforms in the sector can be attributed to well-deserved break. For others it will not be easy. In the upcoming month of August will be three years since the first problems appeared with the British bank Northern Rock, which after weeks triggered a liquidity crisis. A year later, does it require large U.S. banks to be bailed out by government. The time is ripe to ask what has changed since then to make the global financial system more secure in reporting greater risks and less dependent on government support. The sad answer is that changes are not enough. Last week the bank regulators have imposed new standards on capital adequacy and liquidity – those who had to identify harmonization and firmness in global financial regulations, against the backdrop of attempts by banks to avoid monitoring. Instead, the Bank for International Settlements (BIS) announced exchange earlier proposals and give the banks eight years to meet the requirements. BIS should succumb to pressure from France and Germany do not be too tight to their banks. Discouraging compromise followed European stress tests that only 7 of 91 banks have not passed because the criteria they were too low.
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The British oil company BP could not get in the future to permit oil production in the U.S. coast, provides an energy bill passed yesterday by the lower house of U.S. Congress. The reason for this may be the low level of safety in the company led to the spill in the Gulf of Mexico,. The measure is far from becoming law and is not yet considered by the Senate. However, so called. Miller Amendment puts pressure on BP, which is a magnifying glass by legislators who wish to punish for safety problems. The Senate, in turn, discussed his reform package, which does not include an explicit ban on production by BP. The measure may ultimately fall within the law during the final negotiations between the two chambers of Congress, but under most lobbyists is unlikely. Amendment is part of wider legislation on drilling, which was approved by 209 votes against 193. It provides new safety standards for offshore production, including independent certification of equipment, more thorough inspections and tougher penalties for breaches of safety.
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