Investment company Pallinghurst Resources has increased its bid for Australian chromite and nickel ore supplier Consolidated Minerals following recommendations from the company's board to its shareholders.
Pallinghurst's closet competitor was Territory Resources, but today's increased share price, from an all cash offer to $4.10 per share unconditional cash, has seen the company top all of its rivals.
The recommendation and increased cash offer now means Consolidated shareholders stand to lose a break fee of $10.84m to Pallinghurst if the bid fails.
In a statement released today, Consolidated says it has rejected an offer from Palmary Enterprises Limited, which has a 14% stake in Consolidated Minerals, and will recommend no action is taken on Territory Resources' offer of $2.00 cash and 1.5 ordinary shares.
"After careful consideration of the information contained in the revised Pallinghurst announcement...the directors of CSM unanimously consider that the revised Pallinghurst offer is superior to the Palmary offer and the Territory offer and accordingly unanimously recommend the revised Pallinghurst offer as being in the interests of CSM and its shareholders in the absence of a superior proposal," the statement says.
Consolidated shareholders have until 7pm 13 September this year (Australia, Melbourne time) to vote on the takeover.
Reported by Penny Jones
