Lihir Gold Spikes After $8.5 Billion Bid Snub

Lihir Gold has spurned an $8.5 billion bid from Newcrest Mining.
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(Lihir Gold, Newcrest Mining story updated with stock price movement.)
NEW YORK (TheStreet) -- Lihir Gold (LIHR) American depositary receipts have spiked by 6.7% to $5.90 after Lihir spurned an $8.5 billion bid from Newcrest Mining Thursday, citing unsatisfactory value for its shareholders.

The offer, made on March 29, was for one Newcrest share for every nine Lihir Gold shares, plus 22.5 Australian cents per each Lihir Gold share. Lihir Gold's board called the offer "inadequate."

Lihir Gold said its gold assets are "world class," and that its mines reached an output of 1.124 million ounces in 2009. The company adds that projects in Papua New Guinea and West Africa are expected to lift average annual gold production by about 40% from current levels to 1.45 million ounces from 2012 to 2016.

-- Reported by Andrea Tse in New York

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