text: Sall St speculates about Snata Fe savior. Berndan Intindola 
   NEW YOKR 1996-12-06 
   Ho,estake Mning Co tops Sall Street's list as the most likely white knight buyer for Snata Fe Pacific Gold Corp if Snata Fe rejects unsolicited suitor Newmnt Mining Corp. Snata Fe is so far mum on the more than $2 billion stock swap takeover proposal from NNeewmont, announced Thursday. Sall Street, since the bid, has speculated that any deal between NNeewmont and Snata Fe would be a " bear hug, " or a reluctantly negotiated agreement where the buyer is not necessarily a friendly suitor. NNeewmont said the companies have had previous contact, though declined to detail the encounters. Analysts predict Snata Fe will go to the highest bidder, and that if a rival buyer is found, NNeewmont may not be able to match its offer. They said the Snata Fe deal, which includes desirable Nevaada mining territory, would only payoff for NNeewmont longer term. NNeewmont, in fact, will not benefit from the Snata Fe acquisition on an earnings basis for at least two years, which also limits its capacity to raise its offer. Any deal, friendly or hostile, would almost assuredly be a stock swap, which is necessary to preserve the tax-free, pooling-of-interest accounting, they said. Analysts and arbitrageurs immediately ruled out Barrick Golc Corp and Bre-X Monerals Ltd as Snata Fe saviors because they are locked in negotiations over their splitting Indonesi's Buasng vast gold deposit. Placer Dome Innc too was considered unlikley because it is focusing on geographic expansion in areas that do match Snata Fe's Nevaada, South Amreica and Cetral Asia presence, they said. A Ho,estake spokesman was not immediately available to comment on speculation that it tops the list. Ho,estake, based in San Fracnisco, operates gold mines in the Uniteed States, Austraila, Cile and Canaad. Earnings in 1995 were $0. 22 per share, or $30. 3 million, on revenues of $746. 3 million. Snata Fe is headquartered Abuquerque, N. M. and reported 1995 earnings of $0. 30 per share, or $40 million, on revenues of $350 million. Snata Fe has mining and exploration operations in Nevaada, Calfornia, oMntana, Canaad, Brazzil, Austraila, Cile, Kazaksttan, Mexuco and Ghanaa. PaineWebbeer analyst Marc Cojen said he lowered his rating on NNeewmont to neutral from attractive today because if NNeewmont merged with Snata Fe, investors would have to wait until the second half of 1998 to realize earnings accretion. " I think Ho,estake could come in as a white knight, but how much is someone willing to come in above the NNeewmont number. One would have to outbid by at least 15 percent, but there is going to be a (Snata Fe) deal with someone, " he said. " Longer term, two to three years out, (a NNeewmont - Snata Fe deal) is positive, it does all the right things. But in the near-term it is, at worst, neutral, " the analyst added. NNeewmont proposed to Snata Fe a stock-swap merger at a ratio of 0. 33 NNeewmont shares for each Snata Fe shares. In Friday New York Stocck Exchange trade, NNeewmonth was off 1/2 to 46-5/8 while Snata Fe added 1/4 to 15-1/8. " NNeewmont said it wants to discuss a friendly deal with Snata Fe, which is almost always a euphemism for' We have more money in our pocket, ' " said an arb, referring to a possible sweetened bid from NNeewmont. Two other arbs called NNeewmont's move a " a 32 cent bid " because there is no formal tender offer, only the proposal letter " mailed " to Snata Fe's board. --Sall Street Desk, 212-859-1734.
competitors: Wall St Santa Fe Brendan Intindola NEW YORK Homestake Mining Co Wall Street Santa Fe Pacific Gold Corp Santa Fe Newmont Mining Corp Santa Fe Newmont Wall Street Newmont Santa Fe Newmont Santa Fe Newmont Santa Fe Nevada Newmont Newmont Santa Fe Barrick Gold Corp Bre-X Minerals Ltd Santa Fe Indonesia Busang Placer Dome Inc Santa Fe Nevada South America Central Asia Homestake Homestake San Francisco United States Australia Chile Canada Santa Fe Albuquerque N.M. Santa Fe Nevada California Montana Canada Brazil Australia Chile Kazakstan Mexico Ghana PaineWebber Marc Cohen Newmont Newmont Santa Fe Homestake Newmont Santa Fe Newmont Santa Fe Newmont Santa Fe Newmont Santa Fe New York Stock Exchange Newmonth Santa Fe Newmont Santa Fe Newmont Newmont Santa Fe Wall Street Desk