Consolidated Minerals (CSM) has confirmed today that its board has unanimously recommended that shareholders accept a sweetened $1.15 billion takeover offer from Ukranian group Palmary Enterprises.
The directors of the manganese miner have also stated their intention to accept Palmary's offer by selling 100 per cent of their shareholdings to Palmary.
"Each of the CSM Directors will now initiate their acceptance of Palmary's offer in respect of 100 per cent of their current holdings in CSM shares, in the absence of a superior proposal," a statement from ConsMin said today.
"Accepting by the closing date of 20 December 2007 will mean shareholders will be paid by 10 January 2008."
Palmary increased its takeover offer from $4.70 cash for every ConsMin share to $5.00 cash, after the market closed on Tuesday.
"The CSM directors continue to unanimously recommend that Consolidated Minerals shareholders accept Palmary's increased offer, in the absence of a superior proposal".
Palmary, owned by Ukrainian billionaire Gennadiy Bogolyubov, is already ConsMin's largest shareholder with 14 per cent.
This offer from Palmary is the final trump card in a long drawn out competition with Pallinghurst to acquire ConsMin, forcing Pallinghurst to pull out of the fight once and for all.
ConsMin has been the subject of bids since last October, with its market value more than doubling as the tussle between the rival companies intensified.
Today the Ukranian-backed Palmary Enterprises raised its bid for mining company Consolidated Minerals (CSM) by 20 cents to $4.70 per share, exceeding a rival offer from Pallinghurst Resources Australia.
The battle had been growing increasingly frantic as demand from steelmakers for manganese, of which ConsMin produces 10% of the world's supply, has been driving up prices for the metal.
Given that Pallinghurst has pulled out of the bidding race, and with shares in ConsMin still trading at $5.00 at midday is suggestive that the market believes that the Palmary takeover is a done deal.
