Barrick must pay dealmaker Hannam $2 million over Randgold merger, UK court rules

LONDON (Reuters) - Canada's Barrick Gold indispensable wage British dealmaker Ian Hannam's steadfast $2 cardinal positive expenses for his enactment connected the acquisition of golden miner Randgold Resources, London's High Court ruled connected Wednesday.

Hannam was formerly 1 of JPMorgan's apical rainmakers and nicknamed the "king of mining" for his grounds of brokering deals successful the resources sector, including the merger that created BHP Billiton successful 2001 and the 2012 merger of Glencore and Xstrata.

His advisory boutique Hannam & Partners sued implicit an statement helium says was reached soon earlier Barrick's 2018 acquisition of Randgold.

Hannam & Partners said it was promised a minimum of $10 million, with the fig to summation if the woody was worthy much than $10 billion.

After Barrick and Randgold agreed a woody yet worthy immoderate $18 billion, Hannam asked for $18 cardinal and was rebuffed.

Randgold's lawyers said determination was nary written grounds of the alleged statement and that Hannam & Partners was not owed immoderate payment.

Judge Simon Gleeson said successful a written ruling that "no declaration to supply concern advisory services was ever made".

But helium added: "The claimant's (Hannam & Partners') aboriginal enactment successful promoting the transaction conferred a invaluable payment connected some Randgold and Barrick.

"Both Randgold and Barrick recognised this, and intended to marque immoderate outgo to the claimant successful respect of the worth which they felt that they had received. They estimated this arsenic being an magnitude of $2 million."

Gleeson said that Hannam & Partners was truthful entitled to $2 cardinal positive its expenses.

Hannam & Partners' CEO Neil Passmore said the determination was "a seminal judgement for the concern banking manufacture with a important grant of fees for enactment undertaken connected a handshake, contempt the information determination was nary written contract".

Barrick besides claimed the ruling arsenic a victory, saying Hannam & Partners had been awarded "the magnitude Randgold projected to wage (Hannam & Partners) successful September 2018 for its constricted engagement successful the transaction".

(Reporting by Sam Tobin; Editing by Mark Potter)