Fairstar shares fall as Golden West stake slips

Shares in Fairstar Resources Ltd sank another 5 per cent today as it revealed its holding in takeover target Golden West Resources Ltd had fallen from 32.2 per cent to 24.8 per cent.

The fall is largely the result of a recent Golden West $11.6 million rights issue but the number of shares Fairstar owns has decreased by 50,751.

Fairstar shares fell to as low as 30 cents but ended the day 4.55 per cent lower at 31.5 cents.

Fairstar's share price has slid more than 25 per cent since Tuesday, when it increased its takeover offer for Golden West by offering seven Fairstar shares for each Golden West share.

Golden West has firmly rejected Fairstar's improved takeover offer, arguing that the value of Fairstar scrip is highly uncertain and volatile and that Fairstar adds nothing to the planned Wiluna West iron ore project.