Pallinghurst ups offer for Consmin, ahead of new bidder

Australian metal producer Consolidated Minerals (CNM-L, CSM-A) now has a rival suitor, of a sort.

The company announced that Northern Territory iron ore producer Territory Resources (TTY-A) had sent an “incomplete indicative proposal” for a takeover offer. Territory announced it would offer A$1.50 cash plus 1.5 territory shares, valuing Consmin at A$3.73 per share.

Backing the Territory proposal were metal traders Noble Group and DCM Decometal International Trading, which are large customers for Consmin chromite and manganese, and which together own about a 12% interest in Consmin.

The bid is a rival to the one put together by Pallinghurst Resources Fund and privately-held coal producer AMCI, which offered A$1.38 cash plus two shares in a new company for every five Consmin shares in March. On June 25, Pallinghurst increased its bid by A30 cash.

Consmin also declared a dividend of A4.5 per share for 2007, payable in August to shareholders of record on July 17.