(Repeating for technical reasons)
LONDON (Thomson Financial) - Australian manganese miner Consolidated Minerals Ltd has recommended yesterday's raised 4.50 aud per share offer from metals group Palmary Enterprises Ltd.
The Ukraine company lifted its offer from 3.95 aud in the face of rival bids, including one from Pallinghurst Resources, a private equity firm run by the former chief executive of BHP Billiton, Brian Gilbertson.
Pallinghurst had stated earlier that a top-up payment would be paid to its cash offer of 4.10 aud if any alternative higher offer met certain criteria by Oct 18.
But the board of Consolidated Minerals said the absence of clarity on the terms of the top-up payment mechanism by Pallinghurst and other uncertainty led to it concluding that the increased Palmary offer was superior. It has therefore withdrawn its recommendation for the Pallingshurst offer.
The takeover target also said Palmary had confirmed its ability to fund its offer.
Consolidated Minerals has also faced a rival bid from Australian iron ore miner Territory Resources, which is run by Consolidated Minerals' former chief executive Michael Kiernan. The company continues to recommend that shareholders reject this offer. tf.TFN-Europe_newsdesk@thomson.com ro COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.