Mount Gibson Iron managing director Luke Tonkin, fresh from effectively completing the acquisition of Aztec Resources, has played down the immediate prospect of more takeovers in the junior iron ore sector.
A few days after acquiring 19.9 per cent of Mount Gibson Iron Ltd, Russian billionaire Alisher Usmanov has made a move to acquire 6.9 per cent of takeover target Aztec Resources Ltd, at a cost of $23.3 million.
Hong Kong investor Shanghai Merchants Holdings has declared Mt Gibson Iron's hostile takeover offer for Aztec Resources a failure at current levels and has called on the two companies to negotiate an acceptable merger agreement.
Shares in squabbling iron ore companies Mt Gibson Iron Ltd and Aztec Resources Ltd jumped two per cent today on news of strategic stakes in both being taken by Hong Kong-based Shanghai Merchants Holdings Ltd.
Aztec Resources Ltd has again recommended the rejection of a takeover bid from Mount Gibson Iron Ltd, after securing credit approval for a $100 million finance facility to fund development of the Koolan Island Iron Ore project.
Mt Gibson Iron Ltd has claimed an equity deal struck by target Aztec Resources Ltd today with Australian Royalties Corporation Pty Ltd could actually make its takeover easier because the agreement was below the bid price.
Watchers of the Mount Gibson Iron Ltd bid for Aztec Resources Ltd will have a tense weekend, with the bigger firm announcing an extension of the closing date of offers made under the takeover bid to November 3.
A new complication in the long-running Mt Gibson Iron Ltd bid for Aztec Resources Ltd has emerged with the target revealing it is in senstive negotiations with another party which could result in a defeating condition in the takeover being triggered.