13/07/2009 - 11:26

Avoca's Dioro offer now unconditional

13/07/2009 - 11:26

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Avoca Resources says it is surprised that target Dioro Exploration has not provided a recommendation to its takeover bid as it today declared the offer unconditional.

Avoca Resources says it is surprised that target Dioro Exploration has not provided a recommendation to its takeover bid as it today declared the offer unconditional.

The unconditional declaration comes just a week before the takeover offer is scheduled to close on July 21.

Last week Avoca sweetened its all-scrip offer from one of its shares for every 2.82 Dioro shares to 2.4 Dioro securities.

Dioro has yet to make a recommendation on the increased offer, telling shareholders last week to take no action until it had reviewed the offer.

Staying with its hostile nature, Avoca attacked Dioro's lack of action, saying it was "very surprising" that Dioro had yet to make a recommendation given the "magnitude of the increase" and the scheduled closing date.

Avoca had previously said that Dioro needed a "reality check" after independent auditors of the offer, KPMG valued Dioro at an average price of $1.88 a share.

The Australian Securities and Investment Commission has also expressed concern at the high valuation of Dioro's shares.

Shares in Dioro were unchanged at 67.5 cents while shares in Avoca were up one cent to $1.55 at 13:02 AEST.

Today Avoca said it will accelerate the payment of the offer in that Dioro shareholders will receive the Avoca shares within 10 business days of receipt of acceptance.

The suitor added the prospects of another offer were low given Avoca's blocking 14.95 per cent shareholding.

Two of Dioro's major shareholders have already accepted the takeover offer.


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