Crosby gives tough fight to Gujarat NRE in Rey bid BS Reporter /...

Crosby gives tough fight to Gujarat NRE in Rey bid

BS Reporter / Mumbai/ Ahmedabad September 05, 2009, 0:36 IST

Rey Resources Ltd., an Australian coal explorer, rose the most in two weeks in Sydney trading after Crosby Capital Ltd. offered A$43.4 million ($36 million) to rival a bid from Gujarat NRE Minerals Ltd (GNML).

Crosby Capital, a Hong Kong-based investment bank, offered 19.5 Australian cents for each Rey share, it said today in a statement to the Australian stock exchange. Rey has rejected Gujarat’s bid of either 9.5 cents a share or one of its shares for every five shares.

Sydney-based Rey jumped 18 percent to 23 cents at 11:50 a.m. local time, its biggest gain since Aug. 20.

Gujarat, which today extended its offer to October 2, advanced 8.5 percent to 64 cents yesterday and is yet to trade today. Rey shareholders should take no action on the bid from Crosby, the Australian company said in a separate statement.

Gujarat NRE Minerals, the Australian subsidiary of Gujarat NRE Coke Ltd, had received the Australian government approval for acquiring 100 per cent shares of Rey. GNML had offered one GNM share for every five REY shares.

Rey owns coal, oil and gas tenements, covering large areas in the Canning basin of Western Australia. Rey also has 500 million tonnes of coal resources with potential for large and medium scale development.

Gujarat NRE chairman and managing director Arun Jagatramka had said that the takeover of Rey would provide access to an additional 500 million tonnes of thermal coal resources and coal gas methane.


http://www.business-standard.com/india/news/crosby-gives-tough-fight-to-gujarat-nre-in-rey-bid/369124/