Mineral Resources managing director Chris Ellison. Photo: Attila Csaszar

MinRes pulls out of Atlas takeover

Wednesday, 20 June, 2018 - 12:37
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Chris Ellison-led Mineral Resources has decided against making a counter offer to Gina Rinehart’s $390 million takeover bid for junior miner Atlas Iron.

Mrs Rinehart's company Hancock Prospecting announced on Monday an all-cash offer of 4.2 cents per share for Atlas via subsiary Redstone, topping MinRes’s previous $280 million all-scrip bid.

The junior miner said yesterday that MinRes had three days to respond to the Hancock-Redstone offer, but today MinRes said it would not lift its offer.

“MRL has determined that it will not make a counter proposal to the Redstone offer,” the company said in a statement to the ASX today.

Monday’s offer came after Andrew Forrest-led Fortescue Metals Group and Hancock each bought a 19.9 per cent stake in Atlas.

Following its purchase, Fortescue said it did not intend to support the MinRes takeover offer but has offered no further comment on its intentions.

Shares in Atlas remain steady at 4.4 cents each at 2pm AEDT, while MinRes shares were up 0.56 per cent at $16.24 each.