Mineral Resources Considering Response To Rival Lion Bid 06/10/2009 4:21PM
MELBOURNE (Dow Jones)--Mineral Resources Ltd. (MIN.AU) said Tuesday its all-share bid for Polaris Metals NL (POL.AU) remains compelling and it is considering its response to the rival cash bid from Lion-Asia Resources Pte. Ltd.
Lion-Asia is offering 60 Australian cents per Polaris share in a deal that values the entire company at A$105.5 million, while Mineral Resources is offering one of its shares for every 12.5 Polaris shares held, which equates to 50.4 cents a share at last night's closing prices.
Mineral Resources Managing Director and Executive Chairman Peter Wade said the all-share offer is still compelling and offers shareholders upside from the delivery of Polaris' iron ore projects.
"Our bid is very compelling currently but certainly in terms of the future value of the shares of Mineral Resources, we think that it certainly would more than match the 60 cents a share offer," he told Dow Jones Newswires.
Wade said Mineral Resources, a mining services company, has the expertise to bring Polaris' flagship Yilgarn project into production ahead of schedule in mid-2010.
"That is substantially ahead of when the original Polaris team was trying to bring it on board and it is certainly, we think, ahead of anything any other company could do," he said.
Mineral Resources is now reviewing the details of the Lion-Asia offer and it is too early to say what its response will be, he said.
-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094; [email protected]
POL Price at posting:
60.5¢ Sentiment: Hold Disclosure: Held
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