27/06/2008 - 14:00

Herald recommends both takeover offers

27/06/2008 - 14:00

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With two identical takeover bids on the table for Perth-based Herald Resources Ltd, the company has today recommended its shareholders to accept either offer.

With two identical takeover bids on the table for Perth-based Herald Resources Ltd, the company has today recommended its shareholders to accept either offer.

Both Antam-Zhongjin and Pt Bumi Resources TbK have each made an unconditional cash offer of $2.80 per share, with Antam's offer set to close on July 1 and Bumi to close on July 3.

Herald chairman Terence Allen said the board had been presented with two takeover offers that were identical from a financial viewpoint and again noted that the current situation is effectively a stalemate.

"From an economic viewpoint, we see no advantage in either offer over the other for the Herald shareholders and hence we do not propose to make a single offer recommendation," Mr Allen said in a statement.

"Herald shares continue to trade at prices above the two current $2.80 offers from each [bidder].

"Despite this, if both offers were to close unchanged, we believe remaining minority shareholders would be confronted with an uncertain future in terms of the market price and liquidity of their Herald shares."

Herald directors have already accepted the Antam offer, which has a stake of 19.29 per cent in Herald.

Bumi currently has a 19.86 per cent interest.

Shares in Herald last traded at $2.90 just before market close.

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