mergermarket article

Headline: Carabella: Arbitrageurs begin to fill register but no process underway � MD
Proprietary Intelligence

Main body : In recent weeks arbitrageurs have begun to build positions in Carabella Resources [CLR:AU], now making up around 25% of the Queensland explorer�s register, Managing Director Mitch Jakeman told this news service.
This comes after Wavenet International [WAL:AU], which received just over 16m shares of Carabella from two investors when the company went public in December, acquired an additional 7.4m shares last week, increasing its stake in Carabella to just over 19%.
Shares in Carabella jumped 7% following the announcement and another 6.6% since the company brought on board UBS as its defense advisor on Monday.

Jakeman said that some of the arbitrageurs have also been pouring into Wavenet�s register since the investment company raised its stake in Carabella. Wavenet�s shares have climbed nearly 40% since last week.

Despite having received a number of approaches prior to its float last year, Jakeman explained that it has no plans to embark on a sale process at this juncture given that it has sufficient funds to finance its existing projects and it is not seeking cornerstone investors in the company.
�We are not starting a process,� he said. �This is about planning in case something happens, a matter of proper governance. If a takeover occurs, you don�t want to be planning then.�

Although a potential takeover of the company is unlikely to be imminent, Jakeman noted that given where the price of coking coal is it would not be surprising to see interest from potential bidders from China, India, Japan, Taiwan or Korea.

�The way the market is, someone will get through some day,� he added.
Right now Carabella�s priority remains on continuing to develop its Grosvenor West project in Mabbin Creek and identifying further projects within the area later in the year, Jakeman said.

Grosvenor is scheduled to start producing in 2015, according to the company.
by Takashi Toyokawa