Fe Limited extends Padbury takeover bid

Fe Limited has extended the closing date for its Padbury Mining takeover offer by two weeks until November 22.

In a statement to the Australian Securities Exchange, Padbury said that acceptance for the offer remains below two per cent.

The Directors of Padbury have again recommended shareholders reject Fe's offer which remains below the current Padbury share price.

Padbury managing director Gary Stokes said that whilst he was disappointed Fe's offer was continuing, the company would continue to run on a business as usual approach targeting an uplift in shareholder value in the coming months as Padbury focuses on delivering a JORC compliant resource.

"Unfortunately, it would appear that Fe intends to continue its below market offer," said Mr Stokes.

"Whilst initially a distraction for the Company and a drain on resources in terms of requiring the Company to respond to the offer in order to ensure shareholders are fully informed, we have now put the Fe offer to one side as it is clearly misconceived and without merit."

See company statement below:

Padbury Mining Limited (ASX: PDY, "Padbury") notes the announcement by Fe Limited ("Fe") that it has extended the closing date of its below market price takeover offer by two weeks until 22 November 2010. No other substantial terms of the offer have been amended.

Acceptances to date for the offer remain below 2%, indicating a complete lack of support for the Offer.

ASIC required Fe to disclose in its Second Supplementary Bidder's Statement of 1 October 2010 that "the market price of Fe Shares offered together with the cash consideration offered is less than the market price of the Padbury shares Fe seeks to acquire. Padbury shareholders may receive a higher cash value for their shares by selling them on-market."

This situation has not changed - the implied offer price remains below the current Padbury share price and has remained so throughout the offer period (see Appendix 1). For this reason, and others detailed in the Target's Statement, the Directors of Padbury recommend shareholders REJECT the Fe offer.

Padbury has also been informed that some shareholders have mistakenly accepted the Fe offer. Unfortunately these shareholders will now receive Fe shares and cash worth less than their Padbury shares. To follow the recommendation to REJECT the offer, shareholders should do nothing and not respond to any documents sent to them by Fe.

Padbury Managing Director, Mr Gary Stokes, said that whilst he was disappointed Fe's offer was continuing, the company would continue to run on a business as usual approach targeting an uplift in shareholder value in the coming months as Padbury focuses on delivering a JORC compliant resource.

"Unfortunately, it would appear that Fe intends to continue its below market offer," said Mr Stokes.

"Whilst initially a distraction for the Company and a drain on resources in terms of requiring the Company to respond to the offer in order to ensure shareholders are fully informed, we have now put the Fe offer to one side as it is clearly misconceived and without merit.

Padbury is focused on moving forward with the advancement of the significant Peak Hill project. Together with our joint venture partner we have commenced a drilling program at Peak Hill designed to deliver a JORC compliant iron ore resource in early 2011. This will be a significant event for the company and we all look forward to the results of the program."