Lion-Asia raised bid price for Aussie mining firm Polaris
20 Oct 2009
Singapore-based Lion Asia Resources has raised the cash offer for Australian minerals exploration firm Polaris Metals by A$0.10 to A$0.70 per share, trumping a rival bid by Mineral Resources Ltd (MRL). Lion also called on the Polaris Metals board to immediately accept its revised offer as a superior proposal.
Shares of Polaris Metals rose on Monday as the takeover battle for the iron ore-mining firm neared a decisive phase. Locked in the battle for the firm are Lion-Asia Resources Pte Ltd and Perth-based Mineral Resources Ltd (MRL).
The Polaris board had earlier sought to recommend shareholders that they accept a cash and scrip offer from Mineral Resources made last week, but on Monday it said a fresh offer from Lion-Asia placed on Friday appeared to hold more value.
Under the improved Lion-Asia offer, Polaris shareholders will receive 70 cents cash for each share they held.
Lion-Asia also offered to pay the difference between the exercise price and 70 cents for all Polaris options on issue.
"The Polaris board considers the value provided under the improved Lion-Asia offer to be superior to the most recently announced, improved offer by Mineral Resources Ltd," Polaris said in a statement on Monday.
