re: bhp not to extend offer!!
MELBOURNE (MarketWatch) -- BHP Billiton Ltd. (BHP), the world's biggest miner, said Thursday it won't extend its takeover offer for Australian miner WMC Resources Ltd. (WMC) beyond the June 3 closing date.
The offer will lapse at this time unless BHP achieves acceptances for more than 50% of WMC shares, BHP said in a statement to the Australian Stock Exchange.
BHP has acquired 52.7 million WMC shares, equivalent to 4.49% of the company, and holds an economic exposure to a further 4.3% of WMC shares through derivative contracts, it said.
It will declare its offer unconditional if acceptances exceed 50% and the offer will be automatically extended by two weeks from the date that its holding exceeds 50%, BHP said.
"WMC shareholders now need to make a decision," BHP Chief Executive Chip Goodyear said in the statement.
"We believe that our cash offer of A$7.85 per share is full and fair.
"It is not in the interests of BHP Billiton or WMC shareholders to further extend the offer. Should the offer lapse, we will continue to follow our clearly set-out strategy focusing on value-creating opportunities," Goodyear said.
