15 months and counting for sundance deal: afr, page-3

Well, it hasn't scrambled like it often does posting AFR articles, so here you have it:

15 months and counting for Sundance deal

Edited by Sarah Thompson and Anthony Macdonald

Long-suffering Sundance Resources shareholders might not get a break until Christmas with the iron ore explorer’s suitor Hanlong Mining still locked in talks with the China Development Bank and National Development and Reform Commission to bed down the $1.4 billion takeover deal.

On the upside, sources reckon there’s still a better than average chance of the deal completing by December and that even though Merrill Lynch tried to convince its client Hanlong to try and hammer the bid price lower again as iron ore prices fell, the Chinese company rejected the idea.

The financing letter that would provide confirmation that Hanlong has the all clear from CDB is expected to arrive next week.

But now that the no shop clause has been dropped alongside the bid price (from 57¢ to 45¢) Sundance is free to find another suitor.

With that in mind, it’s interesting to note one or two of the entities circling are contemplating tabling a competing offer and are not just betting on the Hanlong deal falling over.

However, it’s believed any counter-bidder wouldn’t be forthcoming until at least deep into November given the length of time until the expected December completion date.