aztec nearly ours says mt gibson Aztec nearly ours, says Mt...

aztec nearly ours says mt gibson Aztec nearly ours, says Mt Gibson
Email Print Normal font Large font John Phaceas
November 6, 2006


MT GIBSON Iron claims it is close to taking control of reluctant takeover target Aztec Resources, after a fresh rush of acceptances for its $280 million scrip bid.

Mt Gibson on Friday extended its one-for-three scrip bid by a week until this Friday after revealing official acceptances had risen from 32 per cent to more than 37.5 per cent. It is believed acceptances had passed 40 per cent by Friday evening.

The late rush is believed to include a swag of Aztec shares held by Sun Hung Kai Investments, the Hong Kong broker linked to billionaire businessman Lee Ming Tee.

Mt Gibson managing director Luke Tonkin said the extension reflected the momentum the bid had generated in the past few days. Although Mt Gibson did not yet own Aztec, he was confident it had effective control.

"We've been tracking it through the day ... and there's a few things that will occur next week that I'm sure will give us what we need," Mr Tonkin said.

"With 40 per cent we'll effectively have control ... it's clear we've got a fairly strong voting power and as we keep moving up, we just keep getting stronger and stronger."

Shougang Steel-backed Shanghai Merchant Holdings, which bought 6.5 per cent of Aztec and almost 10 per cent of Mt Gibson last week, is still believed to hold its Aztec shares.

Mr Tonkin said Shanghai Merchant had not indicated whether it would accept the bid but it would be incongruous for it to retain shares in both companies.

Regardless of whether Mt Gibson passes the 50 per cent threshold this week, Mr Tonkin said it would vote its stock at Aztec's annual meeting on November 29, where chairman Ian Burston is up for re-election.

Mr Tonkin declined to say how Mt Gibson would vote.

Mt Gibson originally said it would offer positions to Mr Burston and Aztec chief executive Peter Bilbe but the battle has since become hotter.

Mr Bilbe said on Friday Mt Gibson's decision to extend was not unexpected.

But his board was focused on acting in the best interest of shareholders and maintained the offer was inadequate, he said.

Aztec fell 0.5c to 24c and Mt Gibson 2c to 73c on Friday.

The West Australian