BHP seeks detente on Noront bidding

BHP has pushed back the expiry date on its $A372 million cash offer for Canadian miner Noront Resources by a week to begin talks with takeover rival Wyloo Metals.

BHP confirmed the companies had engaged in initial conversations regarding Wyloo Metals’ potential support of BHP’s frontrunning bid to acquire Noront via an announcement to the ASX.

Discussions come nearly two weeks after BHP tabled an all-cash offer for Noront at 75 cents per share, a 5 cent per share increase on the bid lobbed by Andrew Forrest backed-Wyloo Metals the day before.

The expiry offer period has now been extended from November 9 to November 16 to allow more time for discussions to progress.

“BHP and Wyloo Metals have engaged in initial conversations and are considering a mutually beneficial arrangement regarding the acquisition of Noront by BHP,” the company said in a statement.

The mining giant noted however that there was no assurance the companies would come to an agreement.

As it stands, Noront’s board has recommended shareholders tender their stocks toward BHP’s offer on the basis it is a “superior proposal” to Wyloo’s offer.

The offer from BHP will now close at 7:00pm on November 16 (Toronto Time).

BHP shares are up 1.24 per cent at 1:44pm to trade at $36.