Rudolf Agnew

"The first action was the open-market purchase by Barrick of 4.9 percent of Consgold. Rudolf Agnew, the CEO of Consgold, perceived the potential of a Munk takeover bid, and was threatened because he thought that was what it was. Agnew made immediate contact with Munk. The two men met on January 13, and discussed the promising possibilities of Consgold’s two mines in North America—Mesquite and Chimney. At that time, the Oppenheimer family of South Africa were the largest single shareholders of Consgold, with about 30 percent of its stock. Under British law Munk couldn’t talk to or deal with the Oppenheimers. It would disqualify Barrick from bidding as a “concert party bid."

"A stand-alone takeover bid would require some £1.8 billion, and as Munk says: With a bid of that magnitude a mistake would be fatal, and I could not take a chance. At the last minute, we had advances from the Oppenheimers through third parties for me to go to South Africa and talk. I was afraid to compromise our legal position and didn’t accept. And by that time I had promised Rudolf Agnew that I would not engage in a dialogue with the Oppenheimers."

"The plan had been to have Barrick acquire a 4.9-percent share block in Consgold. Barrick could then move to acquire control, sell at a profit, or—the real objective—use the block as leverage to get Consgold to sell its two North American mines, Mesquite and Chimney, to Barrick. That objective was on the verge of being reached after discussions between Munk and Rudolf Agnew, Consgold’s chairman. But the price of Consgold shares moved beyond making financial sense, driven so high by the inappropriate Capel intervention that Barrick could no longer compete. Peter Munk does not tolerate being deceived by anyone—let alone professionals whom he has retained to advise and act for him, and who betray his trust. The James Capel Consgold activities were completely unacceptable. It was time to sue."