predictable price drop unfortunately, page-7

Dont know what happen, but here's the other half of the story.


"Some people say the Territory shares will dive when the trading halt is lifted but I've been told they will go to $2.00," Mr Kiernan said.

"I told (Pallinghurst chairman) Brian Gilbertson last week that I wasn't trying to outbid him, this was about putting an alternative proposal for shareholders.

"I'm told that 25 per cent of shareholders don't like the Pallinghurst offer and 20 per cent are backing us.

"This is not Kiernan versus Gilbertson, what this is about is shareholders of ConsMin must have an alternative proposal."

It is believed that Pallinghurst is on the verge of securing a large operating manganese mine, possibly in South Africa, which it would use to boost its cash/scrip bid for 60 per cent of the ConsMin business.

Pallinghurst, which has teamed up with South African investment bank Investec and privately owned US coal miner AMCI and has the support of the ConsMin board, values its bid for ConsMin at $2.82 a share after lifting the cash component by 30c a share last week to coincide with rising manganese prices. Meanwhile, disgruntled shareholders are believed to be teaming up to try to force an extraordinary general meeting of the ConsMin board.

Glenn Stedman, who initiated a "Vote No" campaign against the Pallinghurst bid, said there were plenty of shareholders who had vented their anger at the ConsMin management. "Rod Baxter (CEO) and D#ck Carter (chairman) have no right to deny Territory Resources the chance to do due diligence," Mr Stedman said. "I must say whilst I think the Territory scrip offer is low, so is the Pallinghurst bid.

"ConsMin management were happy to accept the Pallinghurst bid, even at the lower price, because they kept their jobs, they know that if Michael Kiernan gets ConsMin - then they will lose their jobs.

"ConsMin shareholders will do whatever is necessary to get rid of the current management."