18/02/2009 - 13:46

FMG in investment talks with China, UK

18/02/2009 - 13:46

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Shares in Fortescue Metals Group have surged as much as 25 per cent today as the iron ore miner confirms it has been in talks with companies from China and the UK over investment opportunities.

FMG in investment talks with China, UK

Shares in Fortescue Metals Group have surged as much as 25 per cent today as the iron ore miner confirms it has been in talks with companies from China and the UK over investment opportunities.

The Australian Securities Exchange issued a please explain note to FMG after its share price rose 68 cents to an intraday high of $3.34 with a traded volume of 30.2 million shares, compared to an average of some 15 million.

FMG said it had become aware speculation concerning investment interest from various parties and said it "can confirm that there have been recent meetings and site visits with representatives of these companies to explore investment opportunities".

The BusinessDaily website reportedly published that London-based Anglo American and China Investment Corp were in talks with FMG over buying substantial stakes in the company.

FMG said today that it has recently appointed JP Morgan Australia, Grant Samuel and Azure Capital as corporate advisors and to evaluate approaches and proposals.

The confirmation comes hot on the heels of Chinalco's further investment in Rio Tinto last week, where the Chinese company will spend $US19.5 billion to buy-in to Rio's iron ore, copper and aluminium operations.

Shares in FMG closed at $2.99 today.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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