sin-tang becoming a spoiler to xstrata, page-17

Sin-Tang taking on Xstrata.

http://news.smh.com.au/breaking-news-business/sphere-shares-up-on-rival-bid-talk-20101004-163qg.html


Sphere shares up on rival bid talk
October 4, 2010 - 2:39PM

Shares in Sphere Minerals Ltd lifted amid speculation a Singapore-based company is set to launch a proposal to rival Xstrata's takeover bid for Sphere.

Shares in the West Africa-focused iron ore mine developer were up 11 cents, or 4.28 per cent, at $2.68 at 1420 AEDT, eclipsing Xstrata's $2.50 per share bid, which values Sphere at $428 million.

Sphere on Monday appointed Goldman Sachs to act as financial adviser in relation to the takeover offer from Xstrata subsidiary Sidero Pty Ltd.
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Sidero on Friday increased its interest in Sphere to 8.19 per cent, from 7.46 per cent previously, after Sin-Tang Development Pte Ltd earlier last week took an 8.63 per cent interest in Sphere.

A report on Monday suggested that Sin-Tang, which has Chinese connections, was preparing a proposal for Sphere as an alternative to Xstrata's bid, which has been accepted by the target's board.

The report said it was not clear whether Sin-Tang planned a full takeover or a differently structure deal.

A Sphere spokesman said the company was unable to comment on market speculation.

"The company will continue to keep shareholders informed of any material changes in relation to Xstrata's recommended takeover offer," he said.

"Goldman Sachs' appointment today is to assist Sphere in the facilitation of Xstrata's offer through to completion of the deal.

"Sphere's board reaffirms that it recommends, in the absence of a superior proposal, shareholders accept Xstrata's share offer."

Sphere said in its target's statement last month that it believed Xstrata could accelerate its project development plans with funding capability and technical expertise.

Sin-Tang in August took a five per cent stake in Exco Resources Ltd, which is mining gold in South Australia and exploring for copper in Queensland's Cloncurry region, and may ultimately increase its holding in Exco to about 15 per cent.

Sin-Tang also has a 13.34 per cent interest in Royal Resources Ltd and has an agreement toearn a 50 per cent stake in Royal's Red Dragon iron ore project in SA.