what a disgrace - make em pay, page-3

I will draw everyone's attention to Cliff's takeover of Portman Iron Ore a few years ago.

Summary: Reject. History shows that the patient will be rewarded. Portman takeover started at something like $1.20 and ended at $21.10

** Give this post a thumbs up if you choose to reject the WN takeover offer. **

http://www.smh.com.au/business/castiron-gain-for-portman-investors-20080911-4eps.html

Cast-iron gain for Portman investors
Jamie Freed
September 12, 2008
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SOMETIMES it pays to reject a takeover bid.

Minority investors in the West Australian iron ore miner Portman were rewarded for their patience yesterday with a second takeover bid by US iron ore miner Cleveland-Cliffs.

More than three years ago, Cliffs bought 80 per cent of Portman for $544 million. Since then the outlook for iron ore has improved so much that it will cost Cliffs nearly $700 million to mop up the remainder of the shares.

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Cliffs offered the remaining investors - including a few institutions, Hong Kong commodities trader Noble Group and retail shareholders - a record $21.50 a share yesterday. That compares to its $3.85 a share offer in 2005 and the $14.66 price of a buyback in June, which increased Cliffs' holding to 85 per cent. Its shares closed $3.40 higher at $21.10 yesterday.

Cliffs' already large holding means it will need acceptances from only 5 per cent of the Portman register to reach the 90 per cent level needed for compulsory acquisition.

As Cliffs' chief executive, Joseph Carrabba, said: "The likelihood of another bidder emerging is extremely remote." However, he warned there was a risk Portman's share price would fall significantly if the offer did not succeed. Cliffs issued the same warning with its initial bid in 2005, but the iron-ore boom meant that prophesy was never fulfilled.

Cliffs yesterday announced a deal to acquire up to a 30 per cent interest in explorer AusQuest, starting with an initial $26 million placement. The deal would give Cliffs certain rights in relation to sales of AusQuest's assets, such as its promising Table Hill manganese project and its Diamantina copper project in Western Australia and Queensland respectively.



Read more: http://www.smh.com.au/business/castiron-gain-for-portman-investors-20080911-4eps.html#ixzz1gIovi1gL