Analysts say Portman could walk away from its 19.2 per cent stake in Golden West Resources in the wake of last week’s unsuccessful board spill and the unwelcome presence of an 11.4 per cent Chinese shareholder.
As Portman yesterday lost a court bid to have the bulk of its proxy votes from last week’s vote declared valid, attention turned to what the iron ore producer’s next move be.
With Portman “assessing its options” in relation to its stake in the iron ore aspirant, analysts suggested it could turn its sights to one of WA’s other iron ore players. “Golden West need Portman a lot more than Portman need Golden West,” said one analyst who asked not to be named. “Given where the equity markets are there are better opportunities out there.”
However, the door is still open for Portman to either consider a second board spill or launch a takeover bid for the group. A takeover bid is viewed as the more likely move, though it would be complicated by the presence of China’s Hunan Valin Steel Tube as an 11.4 per cent stakeholder.
The speculation came as Justice Neil McKerracher yesterday dismissed Portman’s application to have the bulk of its proxies counted, having previously been ruled invalid because of concerns they should not have been returned to Portman before being passed on to Golden West.
Golden West shares slipped 6¢ to $1.31. Portman lost 43¢ to $17.82.
KATE EMERY
GWR Price at posting:
$1.30 Sentiment: Buy Disclosure: Held
