wah nam questions ferraus report

Wah Nam questions FerrAus report

KATE EMERY, The West Australian
August 9, 2011, 6:38 am

Wah Nam International Holdings may have abandoned its bid for FerrAus but it is now raising doubts about an independent expert report that found in favour of a rival offer from Atlas Iron.

In a letter sent to FerrAus, a copy of which was obtained by West- Business, Wah Nam said it had queries about the assumptions underpinning the report.

Wah Nam's concerns include discrepancies in the cut-off grade used to value assets held by Atlas and FerrAus and what it said was a lack of value attributed to FerrAus' port allocation at Port Hedland.

Wah Nam's decision to seek clarification will heighten speculation about whether it intends to accept Atlas' offer for its 16.4 per cent stake. Wah Nam has criticised the Atlas one-for-four share offer as too cheap.

Wah Nam's opposition would prevent Atlas from proceeding to compulsory acquisition but would not derail the offer because but Atlas needs 50.1 per cent of its target.

Atlas shares closed 17? weaker at $3.58 and FerrAus was off 2? to 88? in a gloomy market.

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