Kalahari bid suggests news not so bad
ABACUS: Nabila Ahmed
From: The Australian
May 03, 2011 12:00AM
AS Extract Resources shareholders contemplate the likelihood China Guangdong Nuclear Power Group will reduce its pound stg. 756 million ($1.15 billion) offer for its 43 per cent shareholder Kalahari, it's worth remembering the recent takeover of fellow uranium miner Mantra Resources.
With Japan in the midst of a nuclear crisis, Russia's Armz reduced its offer for Mantra by 12.3 per cent to about $944m in March. One figure that's interesting is dollars paid per pound of resource.
The fact China Guangdong's bid for Kalahari implies a value of $7.50-$8 per pound of resource compared with the original offer of $10 for Mantra gives hope that there may not be a drastic reduction in the offer.
http://www.theaustralian.com.au/business/opinion/mike-smith-sees-prospects-in-equities-market-for-anz/story-e6frg9if-1226048708797
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