Gold Road Resources Ltd (GOR.AU) saw its stock price soar by 8.16% in Tuesday's trading session, following the company's announcement that it had rejected a $2.1 billion takeover bid from Gold Fields. The significant uptick in share value suggests that investors are optimistic about Gold Road's future prospects and support the company's decision to remain independent.

According to a filing with the Australian Securities Exchange (ASX), Gold Fields had proposed to acquire Gold Road Resources for AU$2.27 per share. However, Gold Road's board determined that the offer materially undervalued the company and was not in the best interests of its shareholders. The company advised its investors to take no action in response to the offer, indicating confidence in its standalone value and growth potential.

Gold Fields currently manages Gold Road's Gruyere joint venture in Western Australia, adding complexity to the proposed deal. Interestingly, Gold Road Resources countered by proposing to purchase Gold Fields' interest in the joint venture, an offer which Gold Fields declined. The existing joint venture agreement also restricts Gold Fields from acquiring more than 10% of Gold Road's shares, potentially limiting its options for pursuing the acquisition. The market's positive reaction to Gold Road's rejection of the bid suggests that investors believe the company may be worth significantly more than the offered price, either as an independent entity or in a potential future deal.