Directors of Herald Resources Ltd have recommended shareholders accept an increased takeover offer of $2.85 cash from PT Bumi Resources Tbk.
In a statement, the Herald directors have now withdrawn their earlier recommendation to accept either offer from Bumi or Chinese-Indonesian consortium Antam Zhongjin, which is offering $2.80 cash for each Herald share.
Bumi yesterday broke the stalemate with its rival Antam yesterday by increasing its offer by 5c, while Antam have demanded Herald pay a break fee of $5 million within 10 days.
Both offers are unconditional with Antam-Zhongjin's offer closing on July 8 while Bumi's offer ends on July 18.
Antam-Zhongjin holds a 19.39 per cent stake in Herald while Bumi has a 19.9 per cent interest.
Both suitors want control of Herald's Dairi lead-zinc project in Northern Sumatra, which is yet to be developed.