china sticks togther for aussie resources?

Interesting article today..

http://www.theaustralian.com.au/business/mergers-acquisitions/chinese-investors-change-tack-on-atlas-bid-for-ferraus/story-fn91vdzj-1226124857185

CHINESE interests have tried to block Atlas Iron's move on FerrAus, with a crucial vote on the takeover rejected by the junior's three biggest shareholders.
Major shareholder China Railway Materials voted against the takeover yesterday, but after the resolution narrowly passed it announced its intention to sell its 10 per cent stake into the offer when it is launched.

The Atlas bid includes first consolidating the two groups' southeast Pilbara assets, which involves the suitor farming some iron ore tenements into FerrAus to emerge with a 38 per cent interest in the target through a $24 million share placement.

The second stage of the deal is a full takeover bid of one Atlas share for four FerrAus shares.

FerrAus shareholders overwhelmingly agreed to the first part of the deal, but the takeover was rejected by about 41 per cent of investors, including China Railway Materials, Hong Kong's Wah Nam, which has a 16.4 per cent stake, and China's Western Mining.

Hong Kong mining investment group Wah Nam, whose bid for FerrAus was trumped by Atlas Iron's offer, had urged shareholders to oppose the offer because of concerns it undervalued the junior's assets.

Despite the objections, the deal will reach the 50.1 per cent minimum acceptance as the combined stakes of Atlas Iron, FerrAus directors and China Railway Materials give the suitor a relevant interest of about 52.2 per cent.

Atlas managing director David Flanagan said an overwhelming majority of shareholders by number and percentage had supported the deal.

"It was one of the highest levels of participation in a vote that I had seen, with around 82 per cent of shareholders voting, and I would expect those that voted for the resolutions to sell their shares into the bid," Mr Flanagan said.

Atlas Iron, which last week declared a maiden $169m profit and maiden shareholder dividend, has been leading consolidation in the junior end of the sector. Late last year it took out Pilbara neighbour Giralia Resources in a friendly $828m deal, following moves on Aurox Resources and Warwick Resources.

But Wah Nam had been hoping to get a firm footing in the competitive space and launched dual bids for Brockman Resources and FerrAus. The later failed, but it has emerged with a 55.3 per cent stake in Brockman.

The Hong Kong vehicle sent a letter to FerrAus shareholders late last week urging them to vote against the takeover because of concerns about the independent valuation report"