• Most Popular
  • Most Shared

Gold Fields faces $1.44 bln claim over Western Areas

Fri Aug 22, 2008 7:07am EDT

Stocks

   

JOHANNESBURG, Aug 22 (Reuters) - Gold Fields (GFIJ.J), the world's No. 4 gold producer, said on Friday it had received summonses over claims totalling 11 billion rand ($1.44 billion) from companies alleging fraud by a subsidiary of the group.

Gold Fields said the claims lie only against subsidiary Western Areas Ltd. (WAL), which owns a 50 percent stake in Gold Field's South Deep mine in South Africa.

Randgold and Exploration Company Ltd and African Strategic Investment (Holdings) Ltd lodged the claim citing the fraudulent sale of shares belonging to Randgold and Uranium One (UUU.TO).

They said the fraud took place when WAL was controlled by a company led by slain mining executive Brett Kebble and others.

Gold Fields said WAL's attorneys would defend the claims, and that the alleged liability was historic and relates to a period prior to Gold Fields purchasing WAL.

(Reporting by James Macharia; Editing by David Cowell)



More from Reuters

Photo

Democrats gain 60th vote on health bill

WASHINGTON (Reuters) - Senate Democrats reached a compromise on Saturday with the last holdout senator that secured the 60 votes they need to pass a broad healthcare overhaul sought by President Barack Obama.

» More Top News
A woman shops at a Sam's Club store, a division of Wal-Mart Stores, in Bentonville, Arkansas June 4, 2009. REUTERS/Jessica Rinaldi

The food-stamp economy

On the last day of every month, shoppers at Walmart load their carts with food and household items and wait for the midnight hour. Is this the new normal in America?  Full Article 

U.S.
Two men shake hands in a file photo. REUTERS/File

Let's make a deal

The battered M&A sector will make a tepid recovery in the coming year and three hot sectors will lead the way, according to a Thomson Reuters analysis.  Full Article 

Global Deals Review