NEW YORK (AP) — Gold and copper producer Newmont Mining is ending its merger talks with Barrick Gold.
Barrick was first to disclose the news on Monday. The Canadian company said that it still felt its shareholders would be best served by the companies combining.
In response to Barrick Gold Corp.'s announcement, Newmont said that it was releasing a letter it sent on Friday to Barrick's board. In the letter, Newmont said it had been working with Barrick over the "past number of months" to see if a merger would be possible. Newmont said in determined in the last several weeks that the "type of constructive, mutually respectful and partnership-oriented relationship necessary to realize the potential benefits of that combination does not yet exist."
Newmont expressed concern over its dealings with Barrick Co-Chairman John Thornton. The company said that last Thursday Thornton twice told them that the process to find a basis to merge was "dead." Newmont Mining Corp. said that Barrick's management team had been professional and constructive, but that it felt it didn't have the same type of constructive talks with Thornton during the last two weeks.
Barrick did not immediately respond to a request seeking comment from Thornton.
Founder and Chairman Peter Munk is expected to retire from the chairman post at Barrick's annual general meeting on Wednesday. Thornton is anticipated to become chairman at that time.
Shares of Newmont declined $1.60, or 6 percent, to $24.85 in morning trading. Barrick's stock fell 32 cents to $17.57.