LONDON, Dec 6 (Reuters) - Dealmaker Ian Hannam is suing
Randgold Resources for up to $18 million he says he is owed for
work on its acquisition by Canada's Barrick Gold ( GOLD ),
telling a London court on Friday that the gold miner reneged on
their agreement.
Hannam was formerly one of JPMorgan's top rainmakers and
nicknamed the "king of mining" for his record of brokering deals
in the resources sector, including the merger of BHP Billiton in
2001 and the 2012 merger of Glencore and Xstrata.
His reputation was, however, dented more than a decade ago
when he was fined 450,000 pounds (now roughly $574,000) for
improperly disclosing information, though his actions were not
found to lack integrity.
Hannam entered the witness box this week to give evidence
for his advisory boutique Hannam & Partners' case over an
agreement he says was reached shortly before Barrick's 2018
acquisition of Randgold, which says the lawsuit is baseless.
Hannam & Partners says it was promised a minimum of $10
million, with the figure to increase if the deal was worth more
than $10 billion.
Its lawyers say Hannam brokered discussions involving
Randgold's then CEO Mark Bristow and Barrick's then executive
chairman John Thornton, which led to the merger.
After Barrick and Randgold agreed a deal ultimately worth
some $18 billion, Hannam asked for $18 million but was rebuffed.
"The Barrick-Randgold merger has been hugely successful,"
Hannam & Partners' lawyer Matthew Hardwick said on the first day
of the trial on Wednesday, adding: "But for Ian Hannam's vision,
it would not have happened."
Randgold's lawyer George Spalton, however, said there was no
written evidence of the alleged agreement and that $18 million
was roughly what Randgold paid its financial advisors, Barclays
and Canadian Imperial Bank of Commerce.
Spalton played Hannam a voicemail left by Bristow, now
Barrick's CEO, shortly after Hannam & Partners sent an $18
million invoice, which Bristow said was "completely
unprofessional".
Spalton also referenced Hannam's 2012 fine for sending two
emails on a client's behalf, suggesting Hannam had a reputation
he "could not be trusted with confidential information" which
meant Barrick did not want him involved.
Hannam denied that, adding he had accepted his fine and been
permitted to open Hannam & Partners by Britain's Financial
Conduct Authority.
"I have apologised and I have taken my punishment," he said.
The trial is due to conclude next week with a ruling
expected at a later date.