takeover with no premium, page-14

Murf ...
you seem to be very well abreast of this stock.

Unfortunately I have had the carpet cleaners in and have been moving furniture around while still trying to keep abreast of what is going on.

Thank you for your valuable contribution and in helping me to get a bit grounded on this stock.

I can't contribute more than what you have just said, other than we don't quite know Gilbertson's plans for the company.

Apparently he Pallinghurst, the investment company Gilbertson is heading up is looking for $1 billion in investments.

But I am not sure how that growth will pan out for Consolidated Minerals.

Pallinghurst is an investment company.

I think and I am only guessing here .. that Consolidated Minerals will be like the main vehicle.

Gilbertson will then look for other great deals around the world say copper projects or uranium projects and these companies will come under the Consolidated Minerals umbrella.

If this is the case then we will get shares in a "new" Consolidated Minerals that will may well have great future growth prospects.

Anyway I am only guessing....

Here is an article you might be interested in

Gilbertson Leads A$625 Million Bid for Consolidated (Update5)

By Tan Hwee Ann and Madelene Pearson

Feb. 23 (Bloomberg) -- Pallinghurst Resources Fund LP, chaired by Brian Gilbertson, and AMCI bid to buy Consolidated Minerals Ltd. in a cash and share offer they said values the Australian mining company at A$625 million ($493 million).

Investors in Consolidated will get A$1.38 in cash per share and two shares in a new company for every five they own, Perth- based Consolidated said today in a statement. The offer is valued at A$2.28 a share, compared with yesterday's closing share price of A$2.25.

Gilbertson, the former chief executive officer of BHP Billiton Ltd., will gain a company that supplies 10 percent of the world's high-grade manganese used to harden steel. He's also designated as the chairman of United Company Rusal, which will account for about 12.5 percent of global aluminum output.

``They are gaining control of Consolidated without paying any sort of premium,'' said Gavin Wendt, an analyst at Fat Prophets Funds Management, in Sydney. ``Obviously the management of Consolidated sees significant upside and benefits in aligning themselves with the proven management style of Brian Gilbertson. He's a fairly aggressive deal maker.''

Shares of Consolidated were unchanged at A$2.25 at the 4:10 p.m. close in Sydney. They had risen 6.6 percent since Jan. 22 when the West Australian newspaper said a fund linked to Gilbertson would make a takeover bid.

Tough to Convince

Consolidated, whose first-half profit rose more than threefold to A$10.1 million, has been focusing on growing its new nickel and zinc-copper business. It wants to produce 15,000 tons of nickel a year, up three times from this year's production targets, as the prices of nickel futures in London soared to a record $40,250 a ton on Feb. 21.

``The nickel side of the business is worth a lot more, and I'll say they are getting it cheap,'' said Michael McCormick, who helps manage and advise on A$220 million at Leyland Private Asset Management and holds the stock. ``It may be a tough'' to convince shareholders of the proposal, he said.

A five-year rally in metals spurred more than $123 billion of mergers and takeovers last year in the mining industry.

Lihir Gold Ltd., a Papua New Guinea gold miner, is buying Ballarat Goldfields NL to get assets in Australia. Oxiana Ltd., the fastest-growing of Australia's 10-largest mining companies, is buying Agincourt Resources Ltd. to double gold resources and boost uranium exploration.

Nickel Market

Consolidated shareholders will own 40 percent of the new company, with the rest owned by an investment vehicle of Pallinghurst and AMCI. AMCI, started by Fritz Kundrun and Hans Mende in 1986, is a closely held coal company.

Pallinghurst and AMCI are paying A$320 million for their 60 percent stake, Gilbertson said on a media conference call.

``With our support, the Consolidated Minerals management team will grow the new company from its existing asset base into a significant global player,'' Gilbertson said in a statement.

Consolidated's Chairman Dick Carter said the new company will speed expansion of its nickel projects, and look to increase its manganese business globally. Gilbertson and AMCI's involvement will give it access to capital and expertise, the company said.

``The nickel market is strong and is likely to remain so,'' said Gilbertson in the conference. ``So is manganese for the steel industry.''

They didn't provide specific details on future plans or say whether the offer was final.

Board Differences

Gilbertson used to run Billiton Plc., which was merged with BHP Ltd. to create BHP Billiton, the world's largest mining company, in 2001. He ran it for six months before departing January 2003 because of differences with the board.

He's slated to become chairman of United Company Rusal, which will overtake Alcoa Inc. as the world's biggest producer of aluminum once OAO Russian Aluminum, known as Rusal, buys OAO Sual Group and the alumina assets of Swiss trader Glencore International AG.

Pallinghurst is seeking $1 billion in investments, according to a slides presentation by Consolidated today.

Value Debate

The board of Consolidated has recommended the proposal, which is expected to be completed in the second quarter of 2007. The company first said on Oct. 18 that it was approached for a transaction, and today said the offer is at a 33 percent premium to its closing share price of A$1.72 on Oct. 9.

Gilbertson and Carter said the company's shares had been elevated by speculation of the takeover offer.

That doesn't take into consideration the rise in nickel prices and a ``better'' manganese market, said Tim Barker, who helps manage $54 billion of assets at BT Financial Group in Sydney.

``Given the information, it would be difficult as a shareholder to say I would be supportive of the offer,'' said Barker. ``I would like to see some evidence of real value being brought to the company.''

Gilbertson and Mende will join as non-executive directors for the new company, which will apply to be listed in Australia, London and Frankfurt. Consolidated will keep its name. Chairman Carter and Managing Director Rod Baxter will keep their positions.

Consolidated is being advised by JPMorgan Chase & Co.