re: Ann: DMM: Directors advise take no action... Take no action on Cape Lambert bid: DMC
AAP May 14, 2010, 10:19 am
Takeover target DMC Mining has advised its shareholders take no action in relation to Cape Lambert Resources's improved $43.3 million offer and says it is in talks with a Chinese party about a rival bid.
Tony Sage-led Cape Lambert on Monday increased its offer to 50 cents per share, valuing the target at $43.3 million, up from 46 cents per share or $40 million previously.
DMC Mining said in its target's statement - issued on Monday prior to Cape Lambert announcement of a revised offer - that shareholders would be advised to accept a rival proposal by China's Meijin Energy Group, also of 50 cents per share.
The target said in a statement on Friday that it was currently in discussions with Meijin about the offer.
"Until such time as those discussions are concluded, the DMC board of directors ... recommends that shareholders take no action this time with respect to the Cape Lambert offer," DMC Mining said.
"The Cape Lambert offer is open until 25 June 2010, so there is sufficient time to fully explore discussions with Meijin," DMC Mining managing director David Sumich said.
DMC Mining's flagship asset is the Mayoko iron ore project in the Democratic Republic of the Congo.
Shares in DMC Mining were up 0.5� to 52.5� 10.02am while Cape Lambert's shares were down 1.5 cents, or 3.45 per cent, at 42 cents.
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