News: AGO UPDATE 1-Australia's Atlas backs Rinehart's $287 mln takeover bid

(adds context, details of bid)

June 29 (Reuters) - Australian iron ore miner Atlas Iron (AGO) said on Friday its board unanimously recommended a A$390 million ($287 million) takeover bid from Australian billionaire Gina Rinehart's Hancock Prospecting.

Hancock's Redstone Corp launched an unconditional all-cash bid for the iron ore miner last week, trouncing an earlier A$280.2 million scrip offer in April from Mineral Resources (MIN)

The recommendation comes days after world No. 4 iron ore miner Fortescue Metals Group (FMG) requested a delay in the bid, seeking further disclosures.

Fortescue has built up a near 20 percent stake in Atlas, enough to block Hancock's Redstone from taking full control of the small miner, and said this week it was still assessing its "strategic options" regarding its Atlas shareholding.

Atlas said it expects the Hancock offer to open early next week and advised shareholders to take no action at present.

Both Hancock and Fortescue, controlled by fellow billionaire Andrew Forrest, covet Atlas' rights at Australia's biggest iron ore port, Port Hedland, given limited opportunities for expansion. Hancock majority-owns the Roy Hill iron ore mine.

($1 = 1.3617 Australian dollars)