Sirius and Odey fund split over Anglo takeover plan.
Byline: JACK RICHARDSON AND ANGHARAD CARRICK
@JackRich93 @angharadcarrick THE BOARD of troubled mining firm Sirius has joined the chorus of voices recommending shareholders accept a controversial takeover bid from Anglo American.
Sirius has been looking for a rescue since it failed to raise key cash in September last year.
However concerns remain that the offer of 5.5p per share is significantly less than the previous valuation of 22.4p from last year.
"We recognise that the current offer does not represent the value that the board and shareholders had previously hoped for," a board statement seen by Reuters said.
It comes after Sirius boss Chris Fraser advised shareholders to accept Anglo American's offer.
However, Crispin Odey's hedge fund yesterday advised shareholders to reject the deal, saying it does not believe Anglo's current offer represents fair value for Sirius shareholders.
"Odey believes Anglo American have chosen not to declare their offer as 'final' because there is a risk of both the deal failing at its current level, and of an interloper at a later stage," the advice stated.
Odey Asset Management, which holds a 1.29 per cent stake in Sirius said yesterday it could only advise a vote in favour if a bid was priced at 7p or above.
Sirius has run into difficulties in the construction of a huge potash mine on the North York Moors, which the company has said will create 1,000 jobs. The mine is believed to be one of the largest polyhalite deposits in the world.
Businesses in the Tees Valley area, and those in the supply chain, are also hoping to benefit through exporting the material.
Shareholders will vote on the deal at a meeting on 3 March.
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|Author:||JACK RICHARDSON AND ANGHARAD CARRICK|
|Publication:||City AM (London, England)|
|Date:||Feb 20, 2020|
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