Felicity Williams From: Herald Sun Thu Oct 15 09:12:55 EST
2009 Thu Oct 15 09:12:55 EST 2009
BHP Billiton is expected to unveil a $220 million bid for United Minerals Corp today.
Market sources told BusinessDaily yesterday that the world's largest miner was finally prepared to make public its much anticipated $1.40 per share offer for the fledgling iron ore producer in Western Australia's Pilbara.
United Minerals placed its shares in a trading halt last week "pending the release of an announcement".
Talk swirled through the market that, along with BHP, potential bidders for the iron ore junior included Rio Tinto and Fortescue Metals Group.
But in recent days the rumours have singled out BHP as the mystery suitor.
In other activity on the Pilbara front, BHP is also in the throes of finalising a proposed $140 billion iron ore joint venture with Rio.
One analyst, who did not want to be named, said the two mining giants might be seeking to take out the smaller players in the area as a means of resolving a long-running legal dispute about third party access to their rail lines.
BHP's rumoured offer for United Minerals may herald a wave of consolidation in Western Australia's Pilbara iron ore belt, he said.
Ferraus, Giralia Resources, Iron Ore Holdings and Talisman Mining are other up-and-coming producers that may be in the crosshairs of their larger rivals, he added.
UMC Price at posting:
91.0¢ Sentiment: Buy Disclosure: Held
