Search

Monday 1 October 2012

Australia's Arrium rejects $1 billion bid from Noble, POSCO group; shares soar


 SYDNEY/MELBOURNE | Mon Oct 1, 2012 12:28am EDT
 

(Reuters) - Australian miner and steel maker Arrium rejected a A$1.01 billion ($1.04 billion) takeover offer from a consortium including Noble Group and POSCO calling the approach undervalued.
Arrium's shares jumped as much as 29 percent on Monday to a one-month high as investors anticipated the company would remain in play. The bidding consortium, called Steelmakers Australia, is expected to respond to the rebuff on Monday afternoon.
The consortium, which also includes National Pension Service of Korea, Korea Investment Corp and Korea Finance Corp, offered 75 cents a share or a 37.6 percent premium to Arrium's close on Friday. Arrium's shares traded above A$0.75 as recently as August 29.
The consortium joins a string of firms aiming to cash in on a drop in the value of resource firms due to tumbling commodities prices. Its bid comes just weeks after Arrium produced its first iron ore from its expanded production.
"There has been a lot of consolidation in the global steel industry for a long time. This is a further working through of the globalization of the industry," said Richard Morrow, director at E.L. & C. Baillieu Stockbroking in Melbourne.
The bid propelled larger rival BlueScope Ltd's (BSL.AX) shares up as much as 8 percent on Monday on hopes of further consolidation in the sector.
A shake-out from sliding iron ore and coal prices has touched off a spate of asset sales as tough times spread from Australia to Indonesia in what has been a lean year in the mining sector.
Iron ore prices, while recovering from a low of $86 a metric ton, remain nearly a third below this year's high of $150 a metric ton as Chinese demand cools. This has rattled share prices, and forced miners including BHP Billiton to put some expansion on hold.
Asia-Pacific mining deals so far this year total $47.6 billion, down 23 percent from a year earlier, Thomson Reuters data shows, but signs of a revival in appetite were evident as near record-low valuations spur deals.
Cashed-up Japanese, Korean and Chinese buyers are cherry-picking mining assets, investment bankers and lawyers say.
Activity has picked up in recent weeks, led by a $960 million bid by Thai state-controlled energy company PTT to privatize coal miner Sakari Resources .
POSCO and others are in talks to buy a 20 percent stake in PT Borneo, which aims to reduce $1 billion in debt incurred last year when it bought a stake in London-listed Bumi Plc.
Shares in Arrium had fallen by over a fifth this year to Friday's close. Declines have been exacerbated in the last month, thanks to the uncertain demand outlook. As of 0408 GMT, Arrium shares were trading up 22.9 percent at A$0.67 while the broader market .AXJO was flat.

UNDERVALUED
"We have carefully considered the proposal. We believe that the proposal undervalues Arrium, and is not in the best interests of Arrium shareholders," Arrium's chairman, Peter Smedley, said in a statement on Monday.
"We also believe that the highly conditional nature of the proposal carries significant risk."
The conditional offer represents a premium of 8 percent over the volume weighted average price of Arrium's shares during the last three months, the firm said in a statement.
Conditions to the offer included a six-week due diligence period, negotiations with existing lenders, no dividend payment and a requirement for no material adverse change to Arrium's operations or capital structure.
Arrium plans to raise iron ore capacity to 11 million metric ton a year by mid-2013 from 6 million metric ton now. It posted an underlying net profit of A$195 million on sales of A$7.6 billion in 2011/12 and had net debt of A$2.14 billion.
The bulk of its sales comes from steel and mining consumables, with iron ore mining contributing just A$819 million to revenue in 2011/12, filings showed. The bid comes .
The company earlier this year changed its name from One Steel Ltd to reflect its shift towards a diversified global mining and materials business and to attract new investors.
Arrium has retained UBS as its financial adviser and Allens Linklaters as its legal adviser. The bidding consortium is being advised by Bank of America Merrill Lynch, according to two people familiar with the bid. ($1 = 0.9616 Australian dollars)

(Reporting by Narayanan Somasundaram and Victoria Thieberger; Editing by Ed Davies and Ken Wills)

50 comments:

  1. A good dividend stock should also be available at an attractive dividend yield. Now, this does not mean that higher the yield, the better the stock.


    asx ex dividend dates

    ReplyDelete
  2. Well said. All indicators should be taken into account before coming to any decision.

    ReplyDelete
  3. Good answer back in return of this matter with real arguments and describing everything regarding that.


    Also visit my web page - comptoir de quartz prix ville de Quebec

    ReplyDelete
  4. This page really has all of the info I needed concerning this
    subject and didn't know who to ask.

    my web blog :: trytube viperx

    ReplyDelete
  5. Hello there, I found your site by the use of Google while searching for a comparable matter, your website got here up, it looks good.
    I've bookmarked it in my google bookmarks.
    Hi there, simply turned into aware of your blog
    via Google, and found that it's truly informative. I'm going to watch
    out for brussels. I will be grateful for those who proceed this in future.
    Lots of folks will be benefited out of your writing. Cheers!


    Here is my blog post - déménagement magog

    ReplyDelete
  6. Excellent article. I absolutely love this website.

    Keep writing!

    Take a look at my site - service de déménagement

    ReplyDelete
  7. I am regular reader, how are you everybody? This
    post posted at this web site is actually nice.


    Visit my weblog george forman grill

    ReplyDelete
  8. It's awesome to pay a visit this web site and reading the views of all friends about this piece of writing, while I am also zealous of getting know-how.


    Also visit my web-site ... site caters

    ReplyDelete
  9. My developer is trying to convince me to move to .net from PHP.
    I have always disliked the idea because of the expenses.

    But he's tryiong none the less. I've been using WordPress on various websites for about a year and am anxious about
    switching to another platform. I have heard great things
    about blogengine.net. Is there a way I can transfer all my wordpress posts into
    it? Any kind of help would be really appreciated!

    Also visit my web-site :: traffic generation

    ReplyDelete
  10. Good replies in return of this difficulty with solid arguments and
    telling all on the topic of that.

    Look at my web blog - uk medical negligence

    ReplyDelete
  11. Very good post. I am facing some of these issues as well..


    Check out my web site: medical negligence solicitors

    ReplyDelete
  12. Normally I don't read article on blogs, however I would like to say that this write-up very compelled
    me to check out and do so! Your writing style has been surprised
    me. Thank you, quite great article.

    My weblog online Blogging Sites

    ReplyDelete
  13. Nice blog right here! Also your web site lots up very
    fast! What web host are you the use of? Can I get your
    affiliate link for your host? I wish my website loaded up
    as quickly as yours lol

    Here is my page ... wedding djs services

    ReplyDelete
  14. I do not even know how I ended up here, but I thought this post was good.
    I do not know who you are but certainly you're going to a famous blogger
    if you aren't already ;) Cheers!

    Here is my weblog ... companies that buy houses

    ReplyDelete
  15. I do accept as true with all the concepts you
    have offered on your post. They are very convincing and will definitely work.
    Nonetheless, the posts are very brief for beginners.

    May just you please prolong them a little from next time?
    Thanks for the post.

    Feel free to surf to my web page ... medical negligence solicitors

    ReplyDelete
  16. I have been exploring for a bit for any high-quality
    articles or weblog posts on this kind of area .
    Exploring in Yahoo I eventually stumbled upon this site.

    Studying this information So i'm glad to express that I have a very excellent uncanny
    feeling I found out just what I needed. I so much no doubt will make
    sure to do not omit this site and provides it a
    glance on a relentless basis.

    Look into my blog medical negligence solicitors

    ReplyDelete
  17. I am now not sure where you're getting your info, but good topic.
    I must spend some time finding out more or figuring out
    more. Thanks for wonderful info I was on the lookout for this info for my
    mission.

    Also visit my blog: internet search engine optimization

    ReplyDelete
  18. Excellent way of telling, and good article to take information about my presentation focus, which
    i am going to deliver in institution of higher education.

    Take a look at my blog :: tefal compact grill 2600

    ReplyDelete
  19. An interesting discussion is definitely worth comment.
    I believe that you ought to publish more about this issue, it
    may not be a taboo matter but usually folks don't speak about these topics.
    To the next! Kind regards!!

    Also visit my web blog ... best carpet cleaners

    ReplyDelete
  20. It's fantastic that you are getting ideas from this paragraph as well as from our argument made at this time.



    my page ... cooking george foreman grill

    ReplyDelete
  21. Link exchange is nothing else except it is just placing the other person's weblog link on your page at suitable place
    and other person will also do same in support
    of you.

    my page ... seo price

    ReplyDelete
  22. It's a shame you don't have a donate button! I'd definitely donate to this
    fantastic blog! I suppose for now i'll settle for book-marking and adding
    your RSS feed to my Google account. I look forward to new updates and
    will talk about this blog with my Facebook group. Talk soon!

    Feel free to visit my web blog - compagnie de demenagement

    ReplyDelete
  23. Piece of writing writing is also a fun, if you be familiar with
    after that you can write otherwise it is complicated to write.


    Here is my homepage: medical negligence solicitors

    ReplyDelete
  24. I simply could not depart your website prior to suggesting that I extremely enjoyed the
    standard info an individual provide to your visitors?
    Is gonna be back often to investigate cross-check new posts

    Here is my web-site: aprilhaley.tumblr.com

    ReplyDelete
  25. Hi there, just became aware of your blog through Google, and found
    that it's truly informative. I'm gonna watch out for brussels.

    I'll be grateful if you continue this in future. Numerous people will be benefited from your writing.
    Cheers!

    Look at my webpage ... poetry blog sites

    ReplyDelete
  26. Woah! I'm really loving the template/theme of this website.
    It's simple, yet effective. A lot of times it's
    very hard to get that "perfect balance" between superb usability and visual appeal.
    I must say you've done a excellent job with
    this. In addition, the blog loads very quick for me
    on Opera. Outstanding Blog!

    My weblog - http://ponyzord.tumblr.com/

    ReplyDelete
  27. There's definately a great deal to find out about this subject.
    I really like all of the points you have made.

    Feel free to visit my web site; comptoir de quartz prix ville de Quebec

    ReplyDelete
  28. Hey there! Would you mind if I share your blog with my myspace group?

    There's a lot of people that I think would really enjoy your content.
    Please let me know. Many thanks

    Feel free to visit my homepage: site blog

    ReplyDelete
  29. Asking questions are truly pleasant thing if you are not understanding something fully, but this
    piece of writing offers good understanding yet.

    My weblog ... Demenagement Martin inc

    ReplyDelete
  30. I would like to thank you for the efforts you
    have put in writing this blog. I really hope to see the same high-grade content from you in the future as well.
    In truth, your creative writing abilities has encouraged me to get my own blog now ;)

    my site; social media data mining

    ReplyDelete
  31. Why visitors still use to read news papers when in this technological world everything is presented on web?



    Here is my web page - social media software

    ReplyDelete
  32. I'm extremely pleased to uncover this web site. I need to to
    thank you for your time for this particularly wonderful read!!

    I definitely really liked every bit of it and i also have you book-marked
    to see new things in your website.

    Here is my homepage - social media impact on business

    ReplyDelete
  33. I am regular visitor, how are you everybody? This piece of
    writing posted at this website is in fact pleasant.



    Feel free to visit my web page: party casino bromont

    ReplyDelete
  34. After I initially commented I appear to have clicked on the -Notify me when new comments are added- checkbox and from now on whenever a comment is
    added I receive four emails with the same comment.

    There has to be an easy method you are able to remove me from that service?
    Thanks a lot!

    My blog post :: déménagement sherbrooke

    ReplyDelete
  35. This post is in fact a pleasant one it helps new net people, who are
    wishing in favor of blogging.

    Also visit my website :: us

    ReplyDelete
  36. Nice post. I was checking constantly this blog and I
    am impressed! Very helpful information specially the last
    part :) I care for such information much. I was looking for this
    certain information for a long time. Thank you and good luck.



    Feel free to surf to my web page - déménageurs sherbrooke

    ReplyDelete
  37. Hello There. I found your blog using msn. This is a really well written article.

    I'll be sure to bookmark it and come back to read more of your useful info.
    Thanks for the post. I'll certainly return.

    my webpage; search engine optimisation chester

    ReplyDelete
  38. For the reason that the admin of this web page is working, no doubt very shortly
    it will be famous, due to its quality contents.



    My homepage: sell houses quickly

    ReplyDelete
  39. Thanks for sharing your thoughts on tips for sell your home.
    Regards

    Also visit my website - how to sell your house uk

    ReplyDelete
  40. This excellent website certainly has all the info I wanted concerning
    this subject and didn't know who to ask.

    Here is my site :: sell your house privately

    ReplyDelete
  41. Fantastic beat ! I wish to apprentice while you amend your
    web site, how can i subscribe for a blog site? The account helped me a acceptable deal.
    I had been tiny bit acquainted of this your broadcast provided bright clear
    concept

    My blog post :: seo expert

    ReplyDelete
  42. Wonderful work! That is the type of info that are supposed to be shared
    across the web. Shame on Google for now not positioning this post higher!
    Come on over and talk over with my site . Thank you =)

    Here is my weblog - best private jet charter

    ReplyDelete
  43. Attractive section of content. I just stumbled upon your site and in accession capital to assert that I
    acquire in fact enjoyed account your blog posts. Anyway I'll be subscribing to your augment and
    even I achievement you access consistently quickly.


    Visit my page - tefal gril

    ReplyDelete
  44. I was suggested this website by my cousin. I am not sure whether this post is written by him as
    nobody else know such detailed about my problem. You are amazing!

    Thanks!

    My blog: tefal kitchen

    ReplyDelete
  45. It's actually a great and useful piece of information. I am satisfied that you
    simply shared this helpful information with us. Please stay us informed like this.
    Thank you for sharing.

    Look at my webpage :: buy house in london

    ReplyDelete
  46. Whats up this is kind of of off topic but I was
    wanting to know if blogs use WYSIWYG editors or if you have to manually code with HTML.
    I'm starting a blog soon but have no coding
    know-how so I wanted to get guidance from someone with experience.
    Any help would be enormously appreciated!

    Here is my blog post ... private air charter uk

    ReplyDelete
  47. Excellent post. I was checking continuously this blog and I'm impressed!
    Extremely useful info specifically the last part
    :) I care for such info much. I used to be looking for this particular information for a long time.

    Thanks and best of luck.

    Look into my web site search engine optimization service

    ReplyDelete
  48. Great blog you've got here.. It's difficult to find high-quality writing like yours nowadays.
    I seriously appreciate individuals like you! Take care!!


    Visit my web-site ... seo preston

    ReplyDelete
  49. Great items from you, man. I've keep in mind your stuff previous
    to and you're just extremely fantastic. I actually like what you have received right here, really like
    what you are stating and the way in which wherein you are saying it.
    You make it enjoyable and you still care for to stay
    it smart. I cant wait to read far more from you. This is actually a wonderful site.


    Feel free to visit my web page health grill with removable plates

    ReplyDelete