From: The Sydney Morning Herald
Aztec sees more takeover offers coming
August 8, 2006 - 4:59PM
http://www.smh.com.au/news/Business/Aztec-sees-more-takeover-offers-coming/2006/08/08/1154802879719.html
Takeover target Aztec Resources Ltd believes there could be other companies planning counter bids to top an offer by predator Mount Gibson Iron Ltd.
Aztec chairman Ian Burston said consolidation amongst the junior developers was inevitable and he had been expecting a bid for the company since day one.
"We are not against or violently opposed to an offer, one could have almost expected it from day one had we got to this stage," Mr Burston told reporters at the annual Diggers and Dealers mining forum.
"If great pots of money was pushed across the table I wouldn't have to advise the shareholders - they'd all be gone."
Mount Gibson launched a takeover bid for Aztec in late July and Aztec directors are still considering the offer.
Mount Gibson is expected to release its bidder's statement next week, after which Mr Burston said the board would make a recommendation to shareholders.
Another iron ore developer, Gindalbie Metals Ltd, recently picked up less then five per cent of Aztec's issued share capital.
Gindalbie was originally involved in a plan for a three-way consolidation with Aztec and Mount Gibson, but later withdrew.
But buying the stake was a sure sign Gindalbie was still interested in Aztec, Mr Burston said.
"For whatever reason, and I don't know that reason, Gindalbie withdrew from the activity taking place at the moment and from a logical point of view, that was a wise thing to do," he said.
"I can also assume if the thought has been there it will be there again ... I don't think they've gone away."
Mount Gibson's all scrip offer of one of its shares for three Aztec shares values the target at around $280 million.
Aztec is developing the $125 million Koolan Island iron ore project off the coast of the Kimberley region of Western Australia, with the first shipment expected to leave the island early next year.
The company is in advanced discussions with three potential buyers and expects to sign off on at least two off-take contracts soon for the anticipated four million tonnes of annual production.
Aztec shares closed at 24 cents, up half a cent. Mount Gibson was half a cent higher at 74.5 cents while Gindalbie was three cents lower at 53 cents.
Aztec sees more takeover offers coming
August 8, 2006 - 4:59PM
http://www.smh.com.au/news/Business/Aztec-sees-more-takeover-offers-coming/2006/08/08/1154802879719.html
Takeover target Aztec Resources Ltd believes there could be other companies planning counter bids to top an offer by predator Mount Gibson Iron Ltd.
Aztec chairman Ian Burston said consolidation amongst the junior developers was inevitable and he had been expecting a bid for the company since day one.
"We are not against or violently opposed to an offer, one could have almost expected it from day one had we got to this stage," Mr Burston told reporters at the annual Diggers and Dealers mining forum.
"If great pots of money was pushed across the table I wouldn't have to advise the shareholders - they'd all be gone."
Mount Gibson launched a takeover bid for Aztec in late July and Aztec directors are still considering the offer.
Mount Gibson is expected to release its bidder's statement next week, after which Mr Burston said the board would make a recommendation to shareholders.
Another iron ore developer, Gindalbie Metals Ltd, recently picked up less then five per cent of Aztec's issued share capital.
Gindalbie was originally involved in a plan for a three-way consolidation with Aztec and Mount Gibson, but later withdrew.
But buying the stake was a sure sign Gindalbie was still interested in Aztec, Mr Burston said.
"For whatever reason, and I don't know that reason, Gindalbie withdrew from the activity taking place at the moment and from a logical point of view, that was a wise thing to do," he said.
"I can also assume if the thought has been there it will be there again ... I don't think they've gone away."
Mount Gibson's all scrip offer of one of its shares for three Aztec shares values the target at around $280 million.
Aztec is developing the $125 million Koolan Island iron ore project off the coast of the Kimberley region of Western Australia, with the first shipment expected to leave the island early next year.
The company is in advanced discussions with three potential buyers and expects to sign off on at least two off-take contracts soon for the anticipated four million tonnes of annual production.
Aztec shares closed at 24 cents, up half a cent. Mount Gibson was half a cent higher at 74.5 cents while Gindalbie was three cents lower at 53 cents.