consmin rebel seek inquiry

We are now getting our chance to say what we think about the deal, its about time. I'm sick of just hearing about the GREAT Gilbertson.
This is from The Australian today.Three Cheers

ConsMin rebels seek inquiry
Kevin Andrusiak
June 13, 2007

DISSIDENT Consolidated Minerals shareholders are pushing for an investigation by regulators into the miner's commodity pricing market updates, as industry experts continue to forecast higher manganese and chromite prices.
ConsMin is in the midst of September quarter manganese and chromite contract negotiations - tipped to be concluded by the end of the month - but a growing group of angry shareholders are ramping up opposition to a Pallinghurst Resources $625 million scheme of arrangement that has been endorsed by the ConsMin board.

The deal with Pallinghurst Investor - a specialised investment vehicle of the Brian Gilbertson-led private company - would see ConsMin give up 60 per cent of the company in return for $1.38 a share and two shares in NewConsMin for every five held in the existing company.

It is understood dissident shareholders have approached a number of top-10 shareholders with assurances from some that they will not endorse the bid.

Pallinghurst needs support from at least 75 per cent of shareholders for the scheme to be successful.

Glenn Stedman, a Queensland shareholder who runs the website Consolidated Minerals Takeover Vote No, said many investors were upset the ConsMin board had not managed to drag out a higher bid from Pallinghurst, which was getting the West Australian miner for a bargain.

There was some market talk that a rival bid for the company was brewing, but industry sources said it was nothing more than gossip at this stage.

"The contact I have had with shareholders is definitely no to the bid. 'Not in a month of Sundays' is what one major investor told me," Mr Stedman said. "The price is the biggest factor, but no one really wants to lose control of the company."

"I can't understand why management was so quick to accept the bid."

ConsMin's recent market guidance, released early April, said it expected to receive an average manganese price of $US2.50 per dry metric tonne unit.

PriceWaterhouseCoopers, which provided the independent expert's advice that the bid was not fair, but reasonable, used a $US3.30dmtu price for manganese in 2007 second-half forecasts and a long-term price of $US2.50dmtu.

Consolidated Minerals closed up 7c to $2.80 yesterday, outside of PWC's $2.33 to $2.77 valuation of the ConsMin business per share. The nominal value for the Pallinghurst bid now stands at $2.50.