Barrick (ABX)/Newmont (NEM): Sorting through the noise -- Cowen
Cowen notes, according to various news sources, Barrick (ABX) and Newmont have recently been involved in merger talks, which broke down over the last few days. Neither co has released an official statement on the issue. A merger between ABX and NEM would create the next super senior and would allow Barrick - a co with high debt and little net growth in the foreseeable future - renewed strength for survival. While firm sees little shareholder benefit from a merger, it would instantly bulk up production and cash for the struggling senior (ABX).