Miner rejects takeover bidMichael VaughanRey Resources appears...

Miner rejects takeover bid

Michael Vaughan

Rey Resources appears set to reject an unsolicited takeover offer from GNM as it prepares to convince shareholders to instead allow it to raise capital and continue the evaluation of its Duchess-Paradise coal project in WA's Canning Basin.

......(4 PARAGRAPHS are omitted with no news)

Mr Jagatramka said REY's progress was "not at the scale or pace at which we would like it to be doing, looking at the large resource potential that they have."

REY entered a trading halt yesterday on advance of a capital raising that Mr Jagatramka said would be dilutionary.

**********************

My comment: Does Mr Jagatramka really think about the dilutionary of its own company GNM which has 800M shares?
Maybe he is not care since Indian parent holds 82.5%.

I bet GNM will always sells coal to its Indian parent with price discount, and the Australian investors in GNM will never get a good dividend payment.