20/12/2007 - 10:20

Perilya sells as Herald talks with new suitors

20/12/2007 - 10:20

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Base metals miner Perilya Ltd has sold its stake in takeover target Herald Resources Ltd, which said today it was in discussions with a number of other parties.

Perilya sells as Herald talks with new suitors

Base metals miner Perilya Ltd has sold its stake in takeover target Herald Resources Ltd, which said today it was in discussions with a number of other parties.

Perilya recently lifted its stake in Herald to 8.86 per cent and there was speculation it may pursue a full takeover.

However it announced today that it has sold its shares for $39.3 million, saying this reflected its "disciplined and value oriented approach to M&A activities".

Meanwhile Herald has again urged its shareholders to take no action on the hostile $455 million takeover bid by Indonesian miner PT Bumi Resources Tbk.

Herald said it had received approaches from a number of parties and was "currently holding discussions with those parties", which were confidential.

Hong Kong-based investment bank Crosby Capital Partners has indicated previously, it was looking at the situation.

Last week, Pt Bumi made a $2.25 per share cash takeover offer for West Perth-based Herald, which is seeking to develop a zinc/lead project in North Sumatra.

In recent days, an independent report commissioned by PT Bumi has valued Herald at between $2.03 and $2.39 per share.

Herald said it would report any material developments to shareholders and the market in accordance with listing rules.

Shares in Herald gained four cents to close at $2.27.



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