take over battle might over for tty

Might lift TTY share price on Monday, could be good time to get back on board.

Territory seeks joint venture with Privat

1st September 2007, 10:00 WST



Michael Kiernan’s Territory Resources has offered to manage the big Woodie Woodie manganese mine in the Pilbara for Privat Group in the wake of the Ukrainian conglomerate’ surprise $1 billion cash bid for Consolidated Minerals yesterday.

Privat offshoot Palmary Enterprises, which has amassed 14.36 per cent of ConsMin, dealt a potential knockout blow in the four-way battle for the WA miner by unveiling an almost unconditional cash bid pitched at $3.95 a share.

The bid was lodged just 45 minutes after Norwegian ferroalloys producer Tinfos publicly confirmed it had snared over 5.14 per cent of ConsMin after a $42 million sharemarket raid this week.

Privat’s move also comes just two days after Brian Gilbertson’s Pallinghurst Resources sparked a chain reaction by raising its own bid a fourth time to $3.60 a share.

With Tinfos still conducting due diligence on ConsMin and Territory refusing to rule out a further sweetener for its own offer, ConsMin shares rocketed another 37¢ to $4.08, valuing the company at $1.06 billion.

Given the huge premium over Pallinghurst’s recommended $3.60 offer, ConsMin’s board last night recommended shareholders sit tight but said it was seeking clarification and would allow Privat to conduct due diligence.

ConsMin chief Rod Baxter said the bidding war reflected the growing recognition of ConsMin’s fundamental value.

Territory’s current offer of $2 cash and 1.5 shares, which yesterday valued ConsMin at $3.425 a share, is also now virtually dead in the water.

But Mr Kiernan said Privat’s move was “completely predictable” and aimed at protecting manganese supplies to its Nikopol ferroalloys smelter in Ukraine.

The Ukrainian group was now considering a joint venture proposal from Territory to manage Woodie Woodie, which produces 10 per cent of the world’s high-grade manganese.

“When I met with them (Privat) in Vienna two weeks ago, I suggested we look at Territory and Privat entering into a joint venture to operate Woodie Woodie mine,” he said. “We put that proposal to them and they are still considering it. Whether they will take that up I’m not sure.”

Sources close to Privat confirmed it had received such a proposal from Territory. Territory is also understood to have offered Privat involvement in the rich Tambao manganese project it is evaluating in Burkina Faso.

Palmary president Gennadiy Bogolyubov, who controls Privat with fellow billionaire Igor Kolomoysky, said the cash offer “represents excellent value” for ConsMin investors.

Privat also controls big African producer Ghana Manganese, which it won in March after outbidding several rivals, including Pallinghurst.

Pallinghurst director Arne Frandsen said last night the group would “sit back and wait for the bidder’s statement”.

JOHN PHACEAS