21/07/2009 - 10:09

Battle looms for Avoca's Dioro bid

21/07/2009 - 10:09

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Dioro Exploration major shareholder Baker Steel Capital Manager has increased its stake in the takeover target, which is expecting an offer from a Canadian company to trump the hostile Avoca Resources bid.

Battle looms for Avoca's Dioro bid

Dioro Exploration major shareholder Baker Steel Capital Manager has increased its stake in the takeover target, which is expecting an offer from a Canadian company to trump the hostile Avoca Resources bid.

In a notice to the stock exchange, Baker Steel showed it had increased its stake in Dioro from 10.87 per cent to 12.66 per cent after buying $1.64 million worth of shares on market.

When Avoca's all-scrip takeover bid was launched in April, Baker Steel agreed to sell part of its shareholding, 2.47 per cent, to Avoca.

Dioro's other major shareholder, Harmony Gold, sold its entire shareholding of 12.48 per cent to Avoca.

Avoca is offering an improved 2.4 of its shares for every Dioro share.

Late yesterday, Dioro unveiled it was in talks with Canadian copper and gold miner Northgate Minerals Corporation regarding a potential material transaction, expected to be revealed within a week.

Dioro claimed the new proposal appeared to be better than Avoca's $68.5 million offer, which was extended by one week to July 28.

Dioro has long stated that it has been in talks with third parties over the past 12 months, however did not release details of any discussions until yesterday, after Avoca urged the target to come clean.

Avoca's shareholding in Dioro has increased from 17.13 per cent to 19.03 per cent.

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