my money is on bhp

BHP: interested to see the votes from share holders who think BHP....

Speculation mounts over United Minerals

United Minerals Corporation NL has been suspended from trading, amid speculation mining giant BHP Billiton may seek control of the company.

09.10.2009 01:23 PM

United Minerals Corporation NL is suspended from trading amid mounting speculation about who may be trying to seize control of the junior iron ore explorer.

The company's shares were suspended from trading on Friday, pending an announcement about a potential change of control transaction, after they entered a trading halt on Wednesday.

United Minerals' prize asset is an iron ore deposit in Western Australia's Pilbara region, and its neighbours include iron ore miners BHP Billiton Ltd, Rio Tinto Ltd, Fortescue Metals Group (FMG).

Speculation has been rife BHP Billiton is set to undertake a series of acquisitions since the company's chief commercial officer Albert Calderon recently said "four or five" opportunities had been identified.

The mining giant had about $US10.833 billion ($A11.96 billion) in cash at June 30, company accounts show.

However, DJ Carmichael resource analyst James Wilson says there could be many potential suitors for the junior explorer.

"It could be anybody," Mr Wilson said.

"It is hard at the moment to work out who it is and why they could be doing it.

"They (United Minerals) are close to everyone, including BHP Billiton, FMG and Rio on the map," Mr Wilson said.

United Minerals' iron ore deposit has an indicated and inferred resource of 122.36 million tonnes.

"It is a serious amount of tonnes for someone to acquire," Mr Wilson said.

"It is very attractive."