30/07/2012 - 14:34

Swiss group makes rival bid for Northern Iron

30/07/2012 - 14:34

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Swiss group makes rival bid for Northern Iron

Northern Iron says Aditya Birla has competition in its bid to take over the company, with Swiss-based trading house Prominvest AG unveiling a $525 million offer.

Aditya upped its offer to $1.40 per share last week, valuing the target at $518 million.

Prominvest, however, has offered $1.42 for each Northern Iron share, subject to a number of conditions, including due diligence, management emetings and site visits.

“Having engaged with Prominvest representatives to further understand their indicative proposal and financial capacity, the board of directors has now also considered the Prominvest proposal,” Northern Iron said in a statement.

Northern Iron said it would allow both companies to conduct due diligence over the company, and would inform shareholders of its plans in due course.

The company operates the Sydvaranger magnetite project in Norway, which produces just over 2 million tonnes of iron ore each year.

At close of trade today, Northern Iron stocks had gained 10.6 per cent, trading at $1.15. 

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