regent's bid for bc takes a hit

WEll at last it would seem this low ball bid will go away it might drop in the short term but once under $3.00 pretty sure the buyers will come back in.
BCI will still be putting out at a rate of 5mtpa by the end of the year timing now might be lousy with the wet season but in the mid to long term this will be a cash making machine.

Cheers
Hotlegs

Regent's bid for BC takes a hit as major investor questions deal's logic Sara-Jane Tasker From: The Australian February 16, 2011 12:00AM

HONG Kong-listed Regent Pacific Group's $345 million bid for iron ore miner BC Iron is under a cloud as a result of the junior's major shareholder questioning the logic of the deal.
Investor confidence in the bid waned on the speculation yesterday, sending the Pilbara miner's shares down 4.62 per cent to $3.10.

Regent's offer of $3.30 cash per share has been backed by BC Iron's board, which includes major shareholder Consolidated Minerals chief Glenn Baldwin.

But Oleg Sheiko, an adviser to Ukrainian billionaire Gennadiy Bogolyubov's Consolidated Minerals, has been reported as saying the logic of the offer "escapes us".

"Here is an iron ore miner on a roll towards substantial export revenues at an iron ore price which may not go higher, but will certainly not decline for the foreseeable future," he told foreign website Business Insider.

"Regent Pacific comes along with a share price offer whose multiple to BC Iron's earnings is lower than anyone in our business would look twice at . . . Regent Pacific is almost too small to identify -- a loss-making venture, with less than half the cash required to make good on its offer."

BC Iron dismissed the report, saying it was "highly misleading".

"Its credibility must be brought into question, given the large number of inaccuracies throughout the article, along with its highly speculative nature," BC said in statement to the Australian Securities Exchange.

Regent's $3.30-a-share offer represented a 4 per cent premium to BC Iron's previous close prior to the bid being launched on January 21, and an 18 per cent premium to the shares' one-month volume-weighted average.

Regent Pacific chief executive Jamie Gibson said when he announced the deal that the company would speak to 21.1 per cent shareholder Consolidated Minerals, but it is understood no meetings have yet taken place.

But Regent, which has a 19.9 per cent stake in BC Iron, was previously quietly confident of support from Consolidated Minerals because Mr Baldwin had supported the deal.

BC Iron said in its statement yesterday that the miner's board had held recent discussions with Consolidated Minerals about Regent Pacific's offer. "However . . . we are unable to confirm the intention of Consolidated Minerals in relation to Regent Pacific Group's takeover offer for BC Iron," the company said.

BC Iron operates the Nullagine project in the Pilbara region through a joint venture with Andrew Forrest's Fortescue Metals Group.