Sideabr Widget Area
Sidebr widget area is empty
To edit this sidebar:
Go to admin Appearance -> Widgets and place widgets into "sidebar" Widget Area
Vale’s $1.1 Billion Bid for Metorex ‘A Little Too Low,’ Metropolitan Says
Postado em 12 de abril, 2011
Vale SA (VALE3)’s 7.5 billion rand ($1.1 billion) bid for African copper producer Metorex Ltd. (MTX) is too low and could be boosted by a rival offer, said Metropolitan Asset Managers, a fund holding Metorex shares.
The 7.35 rand-a-share offer by Rio de Janeiro-based Vale, the world’s second-largest mining company, is “a little low” for Metorex, which could be worth as much as 10 rand a share, said Stephen Roelofse, a fund manager at Cape Town-based Metropolitan. Metropolitan, which manages about $8.4 billion, holds 0.7 percent of Metorex.
Vale’s offer for the Johannesburg-based producer with copper and cobalt mines in the Democratic Republic of Congo represents a 21 percent premium on the average price of the 20 sessions until April 7. Shareholders owning more than 25 percent of Metorex, including Chairman Rob Still and Director Alberto Barrenechea, agreed to accept the offer, the company said in an April 8 statement.
Investors should “hold for a better offer,” Johannesburg- based stockbroker Imara SP Reid said in a note, adding that it values the company at 7.81 rand-a-share. Metorex would be an “especially attractive” target for a mid-cap mining company, Roelofse said yesterday, without elaborating.
Metorex gained 0.6 percent to 7.09 rand a share at the 5 p.m. close in Johannesburg yesterday. It was little changed compared with the 7.10 rand closing price the day before Vale announced its bid on April 8. The stock gained 28 percent over the past month, giving the company a value of 7.11 billion rand.
To contact the reporter on this story: Carli Lourens in Johannesburg at clourens@bloomberg.net
To contact the editors responsible for this story: Amanda Jordan at ajordan11@bloomberg.net