watoday reported that Sichuan Hanlong Group may cut a cash takeover offer for Australian iron ore developer Sundance Resources by 12% after metal prices fell.

According to sources, Hanlong, which won conditional approval for the bid yesterday, will probably offer 50¢ a share for the rest of the company, said the sources. That values Sundance at AUD 1.5 billion. Hanlong, an investor in highway and power projects, had offered 57¢ a share in October.

Slowing demand in Europe and China is weighing on commodity prices, prompting companies to assess spending plans on new mines and takeovers. Since Hanlong made a revised offer in October, iron ore prices have declined 34 per cent and Sundance's shares are down 26 per cent. Sundance last traded on July 31 at 33.5¢.

Source - www.watoday.com.au

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