Australia's Paladin, Summit Resources in trading halt |
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Published
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Mon, 16 Apr 2007 00:51
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SYDNEY (XFN-ASIA) - Paladin Resources Ltd and Summit Resources have requested that trading in their shares be suspended until an announcement to the market or April 18, whichever comes first.On Thursday, Africa-based uranium miner Paladin increased its scrip takeover offer for uranium explorer Summit to one Paladin share for every 1.67 Summit shares from the previous offer of one for 2.04 shares.The revised offer valued Summit shares at 6.22 aud per share or 1.228 bln aud, up from the initial offer of 1.011 bln aud, based on last Wednesday's closing price of Paladin's shares at 10.38 aud.Paladin's revised offer was extended by 14 days to April 27 and is final, in the absence of a competing offer.The miner's second takeover attempt followed Wednesday's news that Summit Resources had entered into a strategic alliance with French nuclear group Areva.Areva planned to purchase 19.5 mln Summit shares at 6.20 aud per share, representing a nine pct shareholding and a cash injection of 121.1 mln aud into the Australian company with an option of increasing its stake in Summit to 18 pct at a price of 7.20 aud per share and a further 171.5 mln aud.In conjunction with the second share subscription, Areva was to be appointed to market two-thirds of Summit's share of potential uranium production from its Australian projects, with Summit retaining the right to market the remaining production.Paladin has attempted to woo Summit's shareholders by claiming Areva's offer for the placement shares is substantially below Summit's headline figures, while there remain significant hurdles to further uranium mining in Australia including current state bans.They said their offer, as opposed to Areva's, provides Summit shareholders with the best way to maximize the value of their holding in both the short and longer term.(1 usd = 1.20 aud)paul.daniel@xfn.com
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NASDAQ
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1398.07 |
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INTEL CP
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Australia's Summit advises shareholders to take no action on hostile Paladin bid 