PERTH (miningweekly.com) – ASX-listed Mineral Resources (MinRes) on Wednesday announced that it will not make a counter offer for iron-ore miner Atlas Iron.
MinRes had been given three business days to come up with a new offer for Atlas after Hancock Prospecting launched a 4.2c a share cash offer for Atlas, in which it already holds a 19.96% interest.
The A$390-million Hancock offer was competing against a A$280-million takeover offer from MinRes, which was offering Atlas shareholders one new MinRes share for every 571 Atlas shares held. Based on the closing price of both companies’ share before the offer, the offer valued Atlas shares at 3.02c a share.
Atlas has previously told shareholders that it would maintain its recommendation in favour of the MinRes proposal, until the company had an opportunity to make a counter offer.