Harmony Gold: US Court Finds Against Gold Fields
November 24 2004 - 8:42AM
PR Newswire (US)
Harmony Gold: US Court Finds Against Gold Fields JOHANNESBURG,
South Africa, Nov. 24 /PRNewswire-FirstCall/ -- Harmony Gold (NYSE:
"HMY"; JSE: "HAR") today announced that on 5 November 2004, Gold
Fields ("Gold Fields") (NYSE: "GFI"; JSE: "GFI") brought an action
in the United States District Court for the Southern District of
New York (the "Court") seeking an injunction against Harmony's
early settlement offer for 34.9% of Gold Fields' shares, alleging
that, inter alia: -- Harmony had entered into purported undisclosed
concert party type agreements with Norilsk; -- Harmony's offers
were coercive; -- Harmony had published in the US misleading gold
reserves figures; and -- Harmony had omitted certain other
information from its public documentation. Shareholders should be
aware that, even prior to the Court's decision, Gold Fields had
abandoned all of its allegations, including those relating to
alleged concert party type arrangements between Harmony and Norilsk
and that Harmony's offers were coercive, except for the allegation
relating to Harmony's disclosure of its gold reserves. The case was
heard on Wednesday 17 November 2004. On Tuesday 23 November 2004,
the Court ruled in favour of Harmony. In particular the Court noted
Gold Fields' failure to challenge Harmony's evidence and that Gold
Fields' own expert witness agreed that Harmony's gold reserve
estimate was "justified". The Court also noted that Chris Thompson
(Chairman of Gold Fields) admitted that he had failed to read
Harmony's primary offer documentation prior to Gold Fields making
its allegations. This judgement represents the latest in what
Harmony considers to be Gold Fields' campaign of frivolous
litigation, which is aimed solely at attempting to divert Gold
Fields' shareholders attention away from the value contained in
Harmony's full and fair offers and to frustrate the ability of Gold
Fields shareholders to assess the offers on their merits. In
particular, Harmony is astonished that, given the decision by Gold
Fields not to pursue its concert party allegations in the US Court,
Gold Fields is continuing to pursue this matter with the SRP and
the Competition Appeal Court in South Africa, despite the Executive
Director of the SRP and then the Executive Committee of the SRP, on
appeal, as well as the Competition Tribunal having already ruled
against them. Unless the context otherwise requires, the
definitions contained in the offer document or the registration
statement sent to Gold Fields shareholders have the same meaning in
this announcement. In connection with the proposed acquisition of
Gold Fields, Harmony has filed a registration statement on Form F-4
(which was declared effective by the Securities and Exchange
Commission (SEC) on November 19, 2004) and filed a final
prospectus, dated November 19, 2004, with the SEC pursuant to Rule
424(b)(5) of the Securities Act of 1933, to register the Harmony
ordinary shares (including Harmony ordinary shares represented by
Harmony American Depositary Shares (ADSs)) to be issued in exchange
for Gold Fields ordinary shares held by Gold Fields shareholders
located in the United States and for Gold Fields ADSs held by Gold
Fields shareholders wherever located, as well as a Statement on
Schedule TO. Investors and holders of Gold Fields securities are
strongly advised to read the registration statement and the
preliminary prospectus, the related exchange offer materials and
the final prospectus (when available), the Statement on Schedule TO
and any other relevant documents filed with the SEC, as well as any
amendments and supplements to those documents, because they will
contain important information. Investors and holders of Gold Fields
securities may obtain free copies of the registration statement,
the final prospectus, related exchange offer materials and the
Statement on Schedule TO, as well as other relevant documents filed
or to be filed with the SEC, at the SEC's web site at
http://www.sec.gov/. Investors and holders of Gold Fields
securities will receive information at an appropriate time on how
to obtain transaction-related documents for free from Harmony or
its duly designated agent. The final prospectus and other
transaction-related documents may be obtained for free from
MacKenzie Partners, Inc., the information agent for the U.S. offer,
at the following address: 105 Madison Avenue, New York, New York
10016; telephone 1 (212) 929 5500 (call collect) or 1 (800) 322
2885 (toll-free call); e-mail . This communication is for
information purposes only. It shall not constitute an offer to
purchase or exchange or the solicitation of an offer to sell or
exchange any securities of Gold Fields or an offer to sell or
exchange or the solicitation of an offer to buy or exchange any
securities of Harmony, nor shall there be any sale or exchange of
securities in any jurisdiction in which such offer, solicitation or
sale or exchange would be unlawful prior to the registration or
qualification under the laws of such jurisdiction. The distribution
of this communication may, in some countries, be restricted by law
or regulation. Accordingly, persons who come into possession of
this document should inform themselves of and observe these
restrictions. The solicitation of offers to buy Gold Fields
ordinary shares (including Gold Fields ordinary shares represented
by Gold Fields ADSs) in the United States will only be made
pursuant to a prospectus and related offer materials that Harmony
has sent to holders of Gold Fields securities. The Harmony ordinary
shares (including Harmony ordinary shares represented by Harmony
ADSs) may not be sold, nor may offers to buy be accepted, in the
United States prior to the time the registration statement becomes
effective. No offering of securities shall be made in the United
States except by means of a prospectus meeting the requirements of
Section 10 of the United States Securities Act of 1933, as amended.
The directors of Harmony accept responsibility for the information
contained in this announcement. To the best of the knowledge and
belief of the directors of Harmony (who have taken all reasonable
care to ensure that such is the case), the information contained in
this announcement is in accordance with the facts and does not omit
anything likely to affect the import of such information.
DATASOURCE: Harmony Gold CONTACT: Issued by (direct line, mobile,
email): Ferdi Dippenaar, +27-11-684-0140, +27-82-807-3684, or Corne
Bobbert, +27-11-684-0146, +27-83-380-6614, all of Harmony Gold; or
United States - Financial Dynamics Business Communications - Hollis
Rafkin-Sax, +1-212-850-5789, +1-917-509-0255, , or Torie
Pennington, +1-212-850-5629, +1-917-838-1369, ; or South Africa -
Beachhead Media & Investor Relations - Jennifer Cohen,
+27-0-11-214-2401, +27-0-82-468-6469, , or Patrick Lawlor,
+27-0-11-214-2410, +27-0-82-459-6709, , both of; or United Kingdom
- Financial Dynamics Business Communications - Nic Bennett,
+44-0-207-269-7115, +44-0-7979-536-619, , Charles Watenphul,
+44-0-207-269-7216, +44-0-7866-438-013, ; or US Information Agent -
MacKenzie Partners, Inc - Daniel Burch, +1-212-929-5500, , or Steve
Balet, 1-800-322-2885, all for Harmony Gold
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