21/07/2008 - 15:22

Cape Lambert up on takeover speculation

21/07/2008 - 15:22

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Leederville-based Cape Lambert Iron Ore Ltd has had a heavy day of trade as speculation mounts that a takeover bid by a Russian steel making giant is imminent.

Leederville-based Cape Lambert Iron Ore Ltd has had a heavy day of trade as speculation mounts that a takeover bid by a Russian steel making giant is imminent.

Nearly 16 million shares was traded in Cape Lambert, up from the previous day's trade of nearly 13 million and significantly higher than the average of some 2 million shares over the past five trading days.

It's believed that Chinese parties which are backing the $400 million sale of the Cape Lambert iron project to China Metallurgical Group Corporation are behind the share raid, shoring up a sizeable stake to prevent a takeover offer which could derail the sale.

Last week, Evraz emerged as the mystery company holding an ample stake in Cape Lambert which was boosted to 19 per cent on Friday.

The sale of the iron project only needs shareholder approval to proceed, with a general meeting scheduled for July 28.

Shares in Cape Lambert closed up 1.5c to 87c today.

 

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