Kristie Batten -- MINING NEWS -- Friday, 2 October 2009
POLARIS Metals, which is currently subject to a takeover offer by Mineral Resources, has announced there may be a potential competing bid for the company, though the company has refused to name the third party.
The announcement comes just days after Polaris denied a report in the Australian Financial Review that noted its largest shareholder, Lion Diversified Holdings Berhad, may be making a cash offer for the company by the end of this week.
The company said that while it had held discussions with Lion, it denied receiving or being aware of any potential offer from Lion.
Lion holds a 25.5% stake in Polaris.
Polaris said it became aware of the potential offer last night, but was not aware of the terms and cannot therefore assess if the potential offer was superior to Mineral Resources’ current $A67 million all-scrip bid.
The company’s board has unanimously recommended the Mineral Resources offer, in the absence of a superior proposal.
Mineral Resources yesterday acquired a relevant interest of 22.3% in Polaris.
Heron has accepted the offer for 19.9% of its 23.3% stake in Polaris, after signing a pre-bid acceptance agreement.
Polaris shares were 1c down to 50.5c this morning while Mineral Resources shares gained 4c to $6.60.
POL Price at posting:
50.5¢ Sentiment: Hold Disclosure: Held
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