big takeover rumour in wa news

This article was contributed by Dentydog...thanx to him.
He actually went to the trouble of typing it out, would you believe.

West Australian article Jan 20th 2007 page 70

RUSSIANS TIPPED TO POUNCE ON CONSMIN
John Phaceas - the reporter
An offshore play for WA Manganese and nickel miner CSM could be just days awayaid mountingspeculation that a Russian backed bid for the company's manganese and chromite operations is nearing completion.

Rumours have swirled persistently around CSM since late October, when the company confirmed it had been approached by an outsideparty keen to do a deal and that it's board had entered preliminary negotiations.

The simmering speculation resurfaced yesterday with teh talk that an offer - either for the companyas a whole or it's big but inconsistent manganese division - could be unveiled after the Australia Day weekend on Jan 29 when CSM is due to release Decembers 1/4 report.

A number of partieshave been bandied about as potentional bidders, including private equity groups, However sources continue to point to a potential $250 million-plus offer for the manganes businessfrom a Russian funded consortium possibly associated with former BHP chief Brian Gilbertson, who is currently heading aggressive Russian aluminum group Sual as it completes a $US 30 billion merger with bigger rival Rusal.

CSM CEO Rod Baxter yesterday refused to comment on whether a bid for the comapny was imminent, or identify any party that had been in talks with the miner.
"I can confirm we are still in discussions", he said

Mr Baxtersaid progress had inevitably slowed over the christmas/ new year period, but it was still too early to say when or if any proposal would ultimately emerge.

Regardless, CSM was focused on it's rebuilding strategy, centred on a rapid expansion of it's Kambalda nickel operations and generating more consistent results from the manganese and chromite business, he said.

Valued at nearly $1 billion at it's peak in 2005 when the stock passed $4.40, the company has been left vulnerable to takeover as it's share price has plunged during the last year over concerns about it's volatile manganese earnings and the untidy departure or the founding CEO Micheal Kiernan. THat volatility was highlighted in September when it posted a shock $6.5 million loss in the midst of Australia's greatest mining boom.

However, it still holds a strategic position as a boutique supplier to the stainless steel industry, with it's Woodie Woodie Mine in the Pilbara accounting for around 10 percent if the world's manganese supplies. It is also a significant producer of chromite from it's nearby Coobina operations, and aims to treble nickle production to 15,000 tonnes a year within 5 years.

CSM shares eased 2 cents yesterday to $2.11