The unfolding of the story about a so-called bid for Gold Fields by an individual calling himself Edward Pastorini:
1. A bold highlighted headline, ‘US INVESTOR PASTORINI MAY LEAD BID FOR GOLD FIELDS’, appears on the Blooomberg terminal at 11:19 South African time on Wednesday, April 11.
2. First story, under the headline ‘Gold Fields may receive buyout bid from Pastorini-led group’, is published at 11:21, quoting an Edward Pastorini.
3. Shares in Gold Fields begin to surge. At one point, the stock was up more than 11% on the day to R152,50.
4. Gold Fields spokesperson Willie Jacobz says that the company has heard a rumour about the bid but has noblack sand equipment from australiat been approached, but adds that the board of directors will consider any offer if it was deemed serious.
5. The story is followed by other news organisations, many raising questions about the existence of Pastorini, as an internet search yields no evidence of his existence and, according to Bloomberg, his name does not appear on any SEC filings in the US, despite his claims that he has been involved in previolease agreement for earthmoving equipmentus deals.
6. Market commentators and observers also begin to question the seriousness of the bid, given that Pastorini appears to detail his full strategy, with one analysts telling Reuters it is “pretty peculiar stuff”.
7. Shares begin to soften and eventually close at R142 in Johannesburg, an increase of 3,5% for the day.
8. The story features on front pages acrosmanganese dioxide application in cement industrys South Africa, Mining Weekly’s own headline being ‘Gold Fields shares leap on takeover talk, says ‘not approached’.
9. Bloomberg publishes a second story saying that Pastrorini “cannot be verified”, and that the phone number provided was the same used by a group in 2004, which launched several “phony bids”.
10. More questions arise about the bid and the existence of Pastorini, with some describing it as a “hoax”.
11. South Africa’s Financial Services Board (FSB) says it will launch a preliminary investigation into the bid that sent Gold Fields’ shares to a seven-month high after being approached by the JSE.
12. One blogger on the Financial Times’ website even postulates that Pastorini does not exist, noting that the letters of his name make up the anagram ‘top insider award’.
13. Bloomberg reveals that documentation relating to the so-called bid was given to it by a Gold Fields executive on condition of anonymity.
14. Harmony CEO Bernard Swanepoel confirms that someone called Edward Pastorini had made several approaches to it to participate in the bid for Gold Fields.
15. Swanepoel says he watched with interest the performance of the Gold Fields share on Wednesday, but that Harmony did not sell any of its holding.
16. Gold Fields requests and has a meeting with FSB on Thursday afternoon.
17. Business Day contacts Theodore Rox-ford, formerly of Hollingsworth, Rothwell & Roxford, who says Pastorini is indeed a real person and is, in fact, his cousin. He denies that he or his previous firm had even participated in “phony takeover bids”.
18. Pastorini reportedly makes contact with Business Day, which also receives the “three-page” proposal document from Pastorini.
19. The saga was continuing to unfold as Mining Weekly went to press.