Tycoons cross swords over taking over gold miners

AIM-listed Metals Exploration is prepared to launch a hostile takeover of rival Condor Gold, the Mail can reveal.

The showdown involves two of Britain’s best-known tycoons, with property magnate Nick Candy and Jim Mellon – who made his fortune in fund management – keeping tabs on the listed gold miners.

Last week, Metals Exploration agreed to buy Condor for around £90m, but despite this, days later Condor was thought to be promoting itself to other potential buyers.

This upset Metals Exploration management, which is now prepared to approach Condor investors directly to get the deal over the line.

Candy is the majority shareholder of Metals Exploration with a 38 percent stake, while Mellon owns 26 percent of Condor.

The battle pits two of Britain’s most colorful businessmen against each other.

Candy made his fortune with his brother Christian and redeveloped parts of West London. Three years ago he was in discussions with Matt Molding about the acquisition of his beauty and nutrition company THG.

Likewise, Mellon is one of the richest people in Britain. His fortune is estimated at £850 million and he has been described as Britain’s Warren Buffett.

His money was made from investments in emerging markets, especially Russia.

Metals Exploration operates in the Philippines and its shares have more than doubled in the past year. Condor Gold is smaller and owns the 2.3 million ounce La India Project in Nicaragua.

The showdown is the latest hostile takeover in the city.

Nat Rothschild’s Volex is in the midst of a hostile takeover of TT Electronics, while Aviva has said it wants to do the same for Direct Line.

Hostile takeovers were a thing of the past, despite being all the rage in London in the 1980s and 1990s when there was more risk appetite.

One banker told the Mail: ‘It was all lunches back then of booze, shoulder pads and testosterone. No one listened to the lawyers or the PR department. It looks like the glory days could be back.”