Saracen Mineral Holdings boss Raleigh Finlayson has told shareholders the company cannot alone create the sort of value that will be delivered by a $16 billion ''merger'' with its partner in the Superpit mine, Northern Star.

The transaction, flagged by Street Talk on Tuesday morning, has been pitched as a merger rather than a takeover, despite the fact it will be delivered by Northern Star issuing $5.76 billion worth of stock to Saracen shareholders to create a combined group called Northern Star.