Consolidated Says Recommends Revised Palmary Bid

Australian miner Consolidated Minerals said on Thursday it recommended a revised A$1.1 billion (US$924 million) offer from Ukraine's Palmary Enterprises.

Palmary said late on Wednesday it would raise its cash bid to A$4.50 from its previous A$3.95, trumping a bid of A$4.10 by investment firm Pallinghurst Resources.

Consolidated said the latest offer was in the interests of shareholders. Its shares were trading 2.4% higher at A$4.61 in the morning session Thursday.

Consolidated had previously recommended its shareholders accept the most recent Pallinghurst bid, which it made on Sept. 6. Prior to that, it advised shareholders to take a Palmary bid of $A3.95.

Palmary, which with 14.36% is Consolidated's largest shareholder, is controlled by Ukrainian billionaire Gennadiy Bogolyubov.

Pallinghurst holds around 5% of Consolidated, which controls about 10% of the world's supply of manganese, a metal used in steelmaking.

Consolidated has rejected another offer from Australian miner Territory Resources. The latest bid values Consolidated at A$1.1 billion, according to Reuters calculations based on shares on issue.