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Allegiance denies takeover talks


Wednesday, November 14, 2007

ALLEGIANCE Mining has thrown cold water over speculation that it is the latest Australian nickel play involved in takeover talks.


Allegiance's share price gained more than 6% at the start of trade on the back of talk that US commodities trader Sempra Metals had off-loaded a 4.65% stake in the company at a premium, raising speculation that another party was looking to build a stake in the nickel play, according to a report by Reuters.

However, Allegiance chairman Tony Howland-Rose denied any talk of a takeover saying he had not had any direct contact with any parties relating to an offer.

"No, I have not had any direct contact at all [with any parties relating to a takeover offer]," chairman Tony Howland-Rose told Reuters.

Howland-Rose said that while he didn't know whether or not Sempra had sold its stake, he wouldn't be surprised given the trader's stated intention to make a profit from the holding.

"But this is hot stuff at the moment ... with Jubilee disappearing from the scene," Howland-Rose added.

The Tasmanian-focused nickel play entered into a $1.76 billion offtake agreement for the nickel concentrate from its flagship Avebury project with China's largest nickel producer Jinchuan Group in April last year.

Jinchuan currently holds an 11.03% stake in Allegiance.

The news comes after Swiss giant Xstrata made a $A3.1 billion all-cash off-market takeover offer for nickel play Jubilee Mines last month.

Shares in Allegiance were 4.5c higher at 75c in early afternoon trade.

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