macquarie group won't recapitalise oz minerals

http://www.theaustralian.news.com.au/business/story/0,28124,25616759-5005200,00.html
MACQUARIE Group has tonight withdrawn a $US1.4 billion bid to recapitalise the embattled OZ Minerals.

The collapse means the $US1.2bn offer from China’s Minmetals group, which has been recommended by the OZ board, is likely to succeed at a shareholder vote tomorrow in Melbourne.

Macquarie had planned a proposal to issue 2.54 billion OZ shares under a plan that would have left miner debt free and allowed it to ownership of its flagship copper and gold assets. Under the Minmetals deal, which will help OZ pay off its $1.3bn debt pile, OZ will retain only its Prominent Hill mine in South Australia.

OZ has rejected two alternative recapitalisation proposals - one from Macquarie and one from RFC and Royal Bank of Canada - insisting the Minmetals offer was the best option for shareholders.

Insiders close to the deal tonight admitted that Macquarie would not proceed with the offer because of the timing of tomorrow’s meeting.

It planned to underwrite the deal, which would have been one its largest transactions recently.