noble now at 30% buying on market, page-7

Billionaire Hong Kong commodities dealer Richard Elman has given his first signal he may oppose a $123 million bid for Perth miner Territory Resources after increasing his stake in the takeover target.

A change of substantial shareholder notice filed by Mr Elman's Noble Group yesterday declared it had spent $1.4 million topping up its Territory stake from 29 per cent to 30.1 per cent.

Although only a modest investment, Noble bought some of the stock at 46? a share just last week, equivalent to the cash bid price of Exxaro Resources' takeover offer.

The rest of the shares were bought at 45? two weeks ago, on the day Territory said it had agreed to be taken over by South Africa's second-biggest coal producer.

Territory shares gained 1.5? to 48? yesterday before Noble announced its increased stake.

It marked a second successive trading day that Territory's shares closed above Exxaro's offer price.

Noble has so far refused to comment on Exxaro's offer. Yesterday's declaration will spark talk Noble may be considering a counterbid.

But as Territory's biggest shareholder and creditor - it is owed $33.5 million - and the buyer of the target's iron ore from the Frances Creek mine in the Northern Territory, Noble will dictate whether a takeover of the Perth miner is successful, and at what price.

Exxaro yesterday released its bidder statement and declared the offer open for acceptances. Mindful of Noble, Exxaro has made its offer conditional on achieving Territory acceptances of at least 60 per cent.

Territory's second-biggest investor, DCM DECOmetal, has entered into a pre-bid acceptance agreement over its 11.2 per cent stake.