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Cape Lambert says hostile Evraz bid likely soon- The Australian

CAPE Lambert Iron Ore's executive director said a hostile takeover bid by Russian steelmaker Evraz looks likely within days.

Despite the takeover speculation, Cape Lambert (ASX: CFE: quote) plans to press on with the sale of its Western Australian project to China Metallurgical Group.

Executive director Tony Sage said Evraz had told Cape Lambert it was mulling a bid in a meeting last week, but he said if it decides to proceed it will have to move quickly ahead of a shareholder meeting next Monday to approve the sale to MCC.

"I would expect it either this afternoon or first thing tomorrow," he told Dow Jones Newswires.

Sage said Cape Lambert is pressing on with the planned sale of its flagship magnetite project to MCC for $400 million and any bid from Evraz would have to be well above the market price.

"All we have heard from the Russians so far is that they have bought a 19.9 per cent stake in the company and they may bid," he said.

"We can't give an opinion until that bid comes out, but the board is of the firm opinion that the price should be well in excess of a dollar."

In early afternoon trading, Cape Lambert shares were up 5 cents, or 5.9 per cent, at 90.5 cents, while the S&P/ASX 200 index was up 3 per cent.