minmetals ups oz minerals offer by 15% , page-8

Agree YuYu. This is an excerpt from an article in WA Today. Very true:

OZ Min shareholders to back deal
10th June 2009

......."My personal view is that shareholders will be better off if the Minmetals' deal goes through," ABN AMRO Morgans analyst Warren Edney told AAP.

"But shareholders sometimes do strange things."

Fat Prophets said the RBC-RFC joint offer was complex and included "a number of rather unappealing elements" including potentially high interest payments for bonds if shareholders did not allow them to be converted to shares.

This proposal was "quite clearly to the benefit of the bondholders and the detriment of existing shareholders, who were not eligible to participate in the bond issue", it said.

OZ Minerals' flagship Prominent Hill mine is widely considered to be a top-notch project but the miner has hinted it may not remain a sole asset company if the Minmetals deal proceeds.

OZ Minerals says that when it repays all of its debt, the Minmetals transaction will leave it with about $US500 million ($A619.9 million) in cash for the continuing development of Prominent Hill and allow it to "pursue other activities".

OZ Minerals shares closed down two cents at 89 cents on Wednesday.