noble in consmin spotlight, page-2

FULL STORY - lets hope they do it, reckon they'll get it at $800 million $3.50/share

Noble in ConsMin spotlight

Hong Kong commodities trader Noble Group is believed to be weighing up an alliance with the mystery consortium circling WA miner Consolidated Minerals in a bid to trump Brian Gilbertson’s floundering take-over plans.

It is understood that Noble chief executive Richard Elman met senior representatives of the mystery group in Hong Kong this week. Noble, which still holds more than 6 per cent of ConsMin, is considered to be a possible cornerstone backer of a rival offer for the struggling nickel and manganese producer.

Though Noble remains one of ConsMin’s biggest shareholders, it halved its stake nearly two years ago at the Princely sum of $3. 90 a share, or 40 per Cent more than the stock’s $2.71 close yesterday.Noble originally picked up its holding for just 20c a share in 1997 to cancel a $US2.5 million ($2.9 million) debt owed by ConsMjn’s failed Predecessor, Valiant Consolidated. Three months ago, Mr Elman sensationally quit the ConsMin board, ostensibly because of the “increasing demands” of his other business commitments.

However, industry insiders say he was unhappy with the modest terms of the offer put by Mr Gilbertson’s Pallinghurst Resources. Pallinghurst is offering just $l.38 in cash for every ConsMjn share, plus two shares in a “new ConsMin” for every five held in the current vehicle.

The offer will see investors receive just $320 million fur a controlling 60 per cent stake in the company they already own, though it will be bolstered by the greater financial and deal-making clout of Mr Gilbertson and fellow backer AMCI coal baron Hans Mende.

It is expected that any Noble-backed bid for Cons Mm would have the support of its former chief executive and fbunder, Michael Kiernan, who would be offered the chance to regain the helm of the company he was forced to quit last year. Mr Kiernan yesterday stepped down as chairman of uranium explorer Uran due to the increasing “pressure of work”. Mr Kiernan is on the boards of seven public companies, including his gold flagship Monarch Gold and Noble-based groups Territory Resources and Precious Metals Australia.

“I suspect my future may be a bit busy,” he said.