Gold miner Newmont stock sinks to lead S&P 500 decliners after confirmation of bid to buy Australia’s Newcrest Mining

Shares of Newmont Corp.
NEM,
-4.51%
dropped 6.1% in premarket trading Monday, after the gold miner confirmed that it made a bid to buy Australia-based Newcrest Mining Ltd., in proposed stock deal. That was enough to make Newmont’s stock the biggest percentage decliner ahead of the open. Based on Newcrest’s Australia-listed shares
NCM,
+1.71%,
the gold miner was valued at $21.92 billion, according to FactSet. Newmont said it’s bid to merge with Newcrest is based on 0.380 Newmont shares per Newcrest share, which based on Friday’s closing price would be about $18.94, or 25.2% above the Friday’s close of the U.S.-listed shares
NCMGY,
+12.03%
of Newcrest Mining. ““We believe a combination of Newmont and Newcrest presents a powerful value proposition to our respective shareholders, workforce and the communities in which we operate,” Newmont Chief Executive Tom Palmer said. Newmont’s stock has rallied 21.6% over the past three months through Friday, while gold futures
GC00,
+0.46%
have climbed 12.4% and the S&P 500
SPX,
-0.61%
has advanced 9.7%.