Both MXX and CUO on the move today up 7% and 4%...

Both MXX and CUO on the move today up 7% and 4% respectively.

http://business.smh.com.au/its-a-fair-copper----but-better-watch-its-back/20080415-26ct.html

It's a fair copper . . . but better watch its back
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CopperCo's pitch for Minsec looks an all-round steal of a deal.

EVERYONE'S taking a hit in this market.

Looking at KPMG's independent expert valuation of takeover target Mineral Securities, you'd think the friendly suitor, CopperCo, was stealing the company right from under the nose of its high-profile chairman, Robert Champion de Crespigny.

CopperCo's 2.2-for-1 share offer was worth about $1.06 yesterday, compared with KPMG's valuation of MinSec of between $2.05 and $3.01. Not surprisingly, the deal was deemed "fair and reasonable" to CopperCo shareholders.

But an equally big steal might be CopperCo shares, which have been severely punished during the recent market downturn despite a strong operational performance at its Lady Annie mine and a buoyant copper price.

A Citigroup analyst, Jonathan Battershill, a fan of the MinSec deal, recently "strongly" reiterated his buy call on the miner with a $1.20 target price.

The company has raised $30 million to fund an expansion that will see Lady Annie producing 30,000 tonnes a year, up from 19,000 tonnes a year.

CopperCo shares closed 1c higher at 48.5c yesterday, having lost about 65 per cent of their value in the recent market rout.

CopperCo's managing director, Brian Rear, said the weak market environment had reinforced his company's view about the importance of buying MinSec, since the enlarged company would have a bigger presence in the equity market.

"Fundamentally CopperCo is probably worth around $1 to $1.30 and MinSec around $2 to $3."

CopperCo is particularly keen on MinSec's 18 per cent stake in South African platinum play Platmin. Rear said CopperCo would like to add to the position. And despite the low value of CopperCo's offer compared with the KPMG valuation, MinSec's managing director, Keith Liddell - also CopperCo chairman - is happy with the deal.

"We've got a big disconnect between asset values and market values," he said. "The whole market has. We are happy with the ratio. It is really that ratio that is the important thing. The benefits that accrue to MinSec shareholders are as strong as they were a few months ago."

De Crespigny, the respected founder of Normandy Mines, is set to chair the combined CopperCo/MinSec after the completion of the deal.