Wednesday, July 2, 2008

Bumi, Crazy action to acquire Herald

Indonesia's PT Bumi Resources BUMI.JK raised its offer for Australian-listed miner Herald Resources Ltd on Wednesday in an effort to knock out a rival bid from an Indonesian-Chinese partnership.
Bumi raised its cash offer by five cents a share to A$2.85, valuing Herald at A$563 million ($541 million), and extended the deadline for its offer until July 18.
Until Bumi's latest move, both it and the rival partnership, comprising Indonesia's PT Aneka Tambang Tbk ANTM.JK and China's Shenzhen Zhongjin Lingnan Nonfemet Co Ltd 000060.SZ, had been offering Herald shareholders A$2.80 per share in cash.
Bumi's latest offer is roughly double the three-month volume weighted average price of Herald's shares before Bumi first launched its takeover bid in December, Bumi said in a statement to the Australian Stock Exchange.
Herald Resources last week declined to pick a winner from two rival bidders for the company, advising shareholders to make up their own mind on which of the then-equal offers to accept.
Herald has said that the takeover process should be concluded as soon as possible.
Bumi has built up a 19.86 percent interest in Herald, while the Antam joint venture owns a 19.29 percent stake. Bumi made a bid through an investment vehicle called Calipso Investment Pte Ltd, while the Antam venture made a takeover offer through Tango Mining Pte Ltd.

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