Ann: Ore Reserve Upgrade - UPDATED , page-18

Wonderful insight andres.

Not only is 42.5c cheap but 57c is a fricking bargain and will make you and everyone else look like fool for selling out at that price.

In all your wisdom, you may say that is all the market is willing to pay but have you heard of a company called Portman Mining of which GJ was CEO? Takeover by Clevland Cliffs at $3.40 in 2005, but not all shareholders sold. They were obiously very clever.

Then iron ore prices when nuts and Portman offered $21.50 in mid 2008 to mop up the rest of the register. Those that didn't listen to GJ in 2005 made almost 6 times on the original bid.

So much for getting FULL VALUE for the company assets wouldn't you agree! Kind of sounds familiar when you consider SDL.

Takeover bid 'fair' says Portman board
January 12, 2005 - 3:09PM
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Perth-based Portman Ltd said a $605 million takeover offer announced today by US iron ore miner Cleveland-Cliffs was attractive and fair.

The offer of $3.40 cash per share for Australia's largest independent iron ore miner has been recommended to shareholders by the Portman board in the absence of a superior offer.

"The iron ore market is enjoying a buoyant period with producers and equity analysts are optimistic that a material price increase will flow from the current round of iron ore price negotiations," Portman chairman George Jones said.

"While our analysis involved an assessment of the future based on uncertain outcomes, the Portman board concluded unanimously that, within a range of reasonable assumptions, the offer was fair."

The offer represents a 43.9 per cent premium to the volume weighted average price for the six months to January 7, the last trading day before Portman requested a trading halt on January 10.

Mr Jones said that at the offer price, many Portman shareholders would have enjoyed substantial capital gains of almost 150 per cent during the past year.

Portman shares last traded on Friday at $3.05 each, valuing the company at $535.62 million.

Portman's directors said that in the absence of a superior offer they intend to accept the offer with respect to their own shareholdings.

"For Cleveland-Cliffs shareholders this transaction presents us with an opportunity to achieve one of our key strategic objectives of acquiring an established business in Australia from which to develop our global business, particularly into Asia," said Cleveland-Cliffs chairman and chief executive John Brinzo.

"The offer represents Cleveland-Cliffs' optimistic view of the value of Portman's shares."

He said that Portman shareholders would not bear any brokerage charges or stamp duty if they accept the offer.

The companies said that changes to stamp duty legislation in Western Australia meant that an acquirer of more than 90 per cent of the shares in Portman would have to pay duty of approximately 5.4 per cent per cent.

For Cleveland-Cliffs, this will increase the cost of the acquisition by approximately $28.3 million, some 16 cents per Portman share.

The offer is subject to 90 per cent acceptance and a number of other conditions.

Portman has agreed to pay a break fee of one per cent of the bid consideration if the board of Portman withdraws its recommendation of the bid in the absence of a superior competing offer, or if another bidder gets control of the company.

Cleveland-Cliffs will also seek to acquire all the Portman unlisted options on issue.

Cleveland-Cliffs and Portman intend to jointly dispatch the bidder's and target's statements within the next 14 days.

Cleveland-Cliffs is being advised by Wilson HTM in Australia and Hill Street Capital LLC in North America.

Portman is being advised by Gresham Advisory Partners.

A trading halt on Portman shares has been lifted.