Rival bid may emerge: Polaris Metals

Takeover target Polaris Metals says there could be another takeover offer in the wings as first bidder Minerals Resources lifts its interest to 22.3 per cent.

Polaris said it became aware last night that a third party may be considering a potential competing takeover bid for the company.

"At this time, Polaris is not aware of the terms (including price or conditions) of any such potential offer," Polaris said in a statement.

"Accordingly, the board of Polaris cannot make any assessment of the likelihood that an offer will be made, or, if it is made, whether it will be superior to the offer by Mineral Resources Limited which is currently open for acceptance."

Polaris directors have recommended Mineral Resources offer, which is one of its shares for every 12.5 Polaris shares.

Today's news comes less than a week after Polaris denied there was a rival bid on the table from its largest shareholder Lion Diversified Holdings Berhad.

However, Polaris did mention that it had been in several talks with Lion but that it had not received, or was aware, of any proposal.