CBH Resources said that a takeover of Perilya Limited would put it in a good position for when there is an upturn in metal prices. It is offering 4.2 shares for every Perilya share.

CBH said that the takeover would mean the Line of Load being under the one company for the first time.

Mr Stephen Dennis MD of CBH said that a lot of work is needed in the takeover. He added that "There will be a lot of development that needs to be undertaken to achieve the merger of assets at Broken Hill, that's not something which will happen quickly. There will be various approvals required from Government and all this is about making sure that we can access the mineralization at Broken Hill which is on the CBH side of the fence."

Mr Gavin Wendt is the head of mining and resources research for the investment advisory group Fat Prophets and he said that the terms of the takeover bid are favorable for Perilya shareholders. He said that "They have pretty close to a 50 per cent stake in this deal of the merged company rather than the previous sort of proposal that was on the table. Look, I think at the end of the day it's probably a good one and really there are some significant synergy benefits there for shareholders in both companies."