Gold Fields' A$27.1 Billion Bid for Northern Star Rejected

Gold Fields has made an unsolicited A$27.1 billion takeover proposal to Australian gold producer Northern Star Resources, but it was rejected by the target company's board.

The offer, which would create the world's second-largest gold producer after Newmont, comes as gold prices have cooled off from record highs earlier this year.

Northern Star said Gold Fields' bid undervalued its portfolio of long-life assets and was made at a 'highly opportunistic time'. The company also cited jurisdictional risks associated with investing in South Africa's Gold Fields, which would leave Northern Star shareholders exposed to the miner's stock.

Elliott Investment Management, an activist investor that holds 6.2% of Northern Star shares, believes the gold producer has 'immense potential for value creation' and should consider a sale or strategic review.