December 02, 2008

Territory Iron tops Pallinghurst led bid for Consolidated Minerals

Bloomberg reported that Australian iron ore producer Territory Resources Ltd may bid AUD 849 million for Perth based Consolidated Minerals Ltd trumping an offer from a group led by Pallinghurst Resources Fund LP. As per reports, Territory may bid AUD 1.5 in cash and 1.5 of its own shares for each share in Consolidated, which is 32% higher than the bid from Pallinghurst.

Consolidated said in a statement to the stock exchange that the board of Consolidated, which has accepted the latest Pallinghurst offer, is studying the proposal from Territory Iron.

The Pallinghurst led group raised its bid on June 25th 2007 and is offering AUD 1.68 a share plus two shares in a new company for every five consolidated shares. The bid values the company at AUD 642 million and compares with a previous offer that Pallinghurst said was worth AUD 625 million. Under the Pallinghurst offer, Consolidated shareholders would own 40% of the new company, with the rest owned by an investment vehicle of Pallinghurst and American Metals and Coal International Inc a closely held coal company.