avoca resources: dioro bid unconditional

Avoca Resources declares all-share Dioro bid unconditional
Alex Wilson | July 13, 2009
Article from: Dow Jones Newswires
AVOCA Resources today declared its all-share $44.5 million takeover offer for Dioro Exploration unconditional.

At the same time, Avoca Resources warned that its target's shares could fall sharply if the deal did not proceed.

The Perth-based goldminer downplayed the chances of a rival bid for Dioro Exploration emerging, pointing to its 14.95 per cent stake in its target.

“The prospects of another bidder emerging are low given Avoca's substantial existing holding (which will now increase) and the fact that no other offer has arisen despite Dioro's repeated statements of ‘ongoing discussions’ over a lengthy period,” Avoca said in a statement.

"In the absence of another offer, Dioro's share price may fall substantially."

Avoca has upped its offer to one of its shares for every 2.4 Dioro shares held, and the bid was due to close on July 21.

Dioro directors rejected Avoca's first offer of one Avoca share for every 2.82 Dioro shares based on an independent experts report, which was disputed by Avoca, and which valued its shares at between $1.40 and $2.28.

Shareholders in Dioro have been urged not to act on Avoca's revised offer until the board had reviewed the terms and made a formal recommendation.

At 0528 GMT, Dioro shares had lost 2.2 per cent at 66 cents, and Avoca was up 2 per cent at $1.57, amid a broader Australian market that was down 1.2 per cent.

http://www.theaustralian.news.com.au/business/story/0,28124,25773447-36418,00.html