09/10/2009 - 14:31

Jindal steps up takeover for Rocklands

09/10/2009 - 14:31

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The takeover battle for South Perth-based Rocklands Richfield is heating up, with first bidder Jindal Steel and Power boosting its shareholding through a $2.8 million on-market purchase.

Jindal steps up takeover for Rocklands

The takeover battle for South Perth-based Rocklands Richfield is heating up, with first bidder Jindal Steel and Power boosting its shareholding through a $2.8 million on-market purchase.

Earlier this week, Rocklands received a second indicative takeover proposal from Indian company Essar Mineral Resources, which is offering 50 cents per share, valuing the takeover at $144 million.

The bid trumps Jindal's offer of 42 cents per share, or $121 million for the entire company.

Jindal has so far acquired 10.49 per cent of Rocklands, and in a notice to the local stock exchange today, had lifted its stake to 12.75 per cent after buying 6.67 million shares at 42 cents.

Both takeover bids are proposals only with no formal offer having yet been made to shareholders.

Rocklands chairman Benny Wu holds a 40 per cent interest in the target.

Shares in Rocklands closed up one cent to 42.5c today.

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