22/07/2008 - 11:43

Perilya, CBH officially end merger

22/07/2008 - 11:43

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The once friendly merger between Perth-based Perilya Ltd and Sydney-based CBH Resources Ltd has officially been terminated.

Perilya, CBH officially end merger

The once friendly merger between Perth-based Perilya Ltd and Sydney-based CBH Resources Ltd has officially been terminated.

Both companies have mutually agreed to cease a merger implementation deed first signed in March when CBH was offering three of its shares for each Perilya share.

In June, CBH increased its offer to 3.5 shares, which Perilya rejected. The Perth company questioned the benefits of CBH's Rasp and Endeavour projects, with the query following CBH's earlier announcement of cost reductions at the two operations.

Both companies have agreed to share equally the independent experts' costs incurred in preparing the merger, and each company will bear their internal costs.

The move is to settle disputes over the payment of a $2 million break fee.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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