Mineral Resources declines to match Rinehart bid for Atlas

Mineral Resources declines to match Rinehart bid for Atlas

Wed, 20/06/2018 - 12:44
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Atlas

Atlas Iron holds several undeveloped tenements that could be brought into production with a larger partner. Photo: Atlas Iron

Mining infrastructure provider Mineral Resources will not make an offer to counter Hancock Prospecting's $390 million bid for Pilbara miner Atlas Iron.

That will likely cool expectation of a possible bidding war for the iron ore miner, after Atlas on Tuesday gave Mineral Resources three business days to match a 4.2 cents per share takeover offer from billionaire Gina Rinehart's Hancock Prospecting.

Atlas operates in the iron ore rich Pilbara region of Western Australia and has undeveloped tenements that could potentially be brought into production with a larger partner.

Hancock Prospecting had bid for the iron ore miner on Monday, trouncing an earlier $280.2 million bid in April from Mineral Resources.

Meanwhile, world No. 4 iron ore miner Fortescue has built up 19.9-percent stake in Atlas, a hold large enough to block Mineral Resources' offer.

Shares of Atlas Iron were up about 1 percent, while Mineral Resources shares were largely flat.