ConsMin defies...

ConsMin defies fall

http://www.news.com.au/heraldsun/story/0,21985,22146066-664,00.html
SHARES in takeover target Consolidated Minerals defied yesterday's market freefall, gaining 10 per cent as heavy trading sparked speculation of a mystery buyer.

The stock gained 36c to close at $3.96, with almost 13 million shares traded - more than ten times the average daily volume traded over the past 12 months.

Territory Resources executive chairman Michael Kiernan yesterday confirmed his company was considering an all-cash offer for ConsMin as an additional alternative to the cash and scrip bid it has already tabled.

The company is likely to make a decision by mid-next week.

"We all want to use the weekend and a couple of days to really consider things because this battle will be won from here with tactics and strategies," he said.

Rival bidder Pallinghurst Resources has a $752 million all-cash offer for ConsMin on the table, which has been recommended by the ConsMin board.

But yesterday's frenzied buying sparked speculation a third party might have entered the fray.

Sources said hedge funds might also be taking a speculative position, with the bidding war heating up.

The soaring stock price sees ConsMin valued at more than $900 million.

The miner has not been valued that high since late 2005 when it was headed by Mr Kiernan.

"This is the second time our group has made ConsMin a billion dollar company," he told BusinessDaily last night.

"We did it once from the inside, now we've done it from the outside."

Territory, which is backed by Hong Kong trading group Noble, Austria's DCM DECOmetal and US bankers Lehman Brothers, is offering $2 in cash and 1.5 shares in Territory for each ConsMin share.

Pallinghurst, headed by former BHP boss Brian Gilbertson, has tabled a $3.30 a share cash bid.

The consortium also includes coal group AMCI, investment bank Investec and US resources investor NGP Mining. South Korean steel giant POSCO has an option to take part.

Pallinghurst last night released it's bidder's statement for the new offer.

A shareholder meeting to consider an earlier offer from Pallinghurst, to be implemented via a scheme of arrangement, has been cancelled.

Pallinghurst is aiming for control of ConsMin with a 50.1 per cent minimum acceptance level.

Territory has a 90 per cent minimum acceptance level.