Magma directors back Panoramic bid

Panoramic Resources has moved a step closer to completing its $40 million takeover of Magma Metals, with the target recommending its shareholders accept the bid.

Panoramic upped its offer today to 1 Panoramic share for every 7 Magma shares, after taking its stake to 54.15 per cent.

The company’s initial offer was two Panoramic shares for every 17 Magma shares.

Magma’s board of directors said they believed the revised offer was not fair, but was reasonable.

“While the board has confidence in the potential of Magma’s assets, we also believe that, in light of the change in circumstances since the time of our initial recommendation, Magma shareholders should now accept the revised offer.”

By close of trade today, Panoramic stocks had fallen 4.3 per cent, to 89 cents, while Magma’s were down 4.1 per cent, at 11.5 cents.