trading halt: merger, page-31

re: ballarat discussing possible merger... ...AND...to add even further speculation/fuel to this conspiracy theory I also noticed this article which suggests it could possibly be the South African gold producer 'Gold Fields', which (coincidentally) just happened to cease becoming a major shareholder this week in AAR.
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Source: www.news.com.au/sundayheraldsun

Miners talking mergersMandi Zonneveldt

October 14, 2006 12:00am

VICTORIA'S rich gold fields look set for further consolidation, with Ballarat Goldfields in merger talks last night, possibly with an international miner.

The news caught the market by surprise, with the company's shares trading 1c lower at 22.5 yesterday ahead of the announcement of a trading halt just before 4pm.

Ballarat said it was in "corporate discussions which may lead to a merger being recommended by BGF directors".

Industry sources said a bid by a local company was unlikely, with Ballarat capitalised at close to $270 million.

Ballarat was the only miner on the Australian Stock Exchange to declare a trading halt yesterday.

South African gold producer Gold Fields was considered the most likely suitor.

The company has exploration ground near Bendigo and has had some encouraging drilling results.

Barrick was also named as a potential predator, but sources said Ballarat's project was probably too small for the gold giant.

Barrick chief executive Greg Wilkins was in Melbourne last week.

Ballarat Goldfields has hit a hurdle in its redevelopment of the old workings beneath the town of Ballarat.

The company needs to raise $120 million to fund its revised development program.

If it agrees to the merger, Ballarat will be the second Victorian gold company in a week to fall to consolidation.

Perseverance Corporation has made a friendly $46 million bid for its neighbour Leviathan Resources.
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....any comments anyone???

Cheers, Pie