Australia | Jan 22 2007
Consolidated Minerals (CSM) shares are up more than 4% this morning, but given a detailed report about a rumoured Russian bid for the company, probably next week, this appears a rather weak response. Maybe some of them still remember the Russian deal by Ainsworth (AGI) – the one that first excited the market and got canceled not long after.
Takeover rumours for a company as “ConsMin” should be regarded as “normal” these days. After all, we’re talking about a very ambitious resources junior who developed into one of the success stories of the past few years – until reality hit home.
ConsMin’s share price was above $4 until mid-2005. It has been one big slide ever since thanks to the company’s manganese operations, from which challenging market dynamics ruined the buoyant prospects for the nickel division.
Now the West Australian has reported that a bid for the company’s manganese and chromite operations is near. But then again, as is often the case with rumours (and Russians), one never knows whether the bid will actually extend to all the company assets.
On Friday, the newspaper quoted ConsMin CEO Rod Baxter as “I can confirm we are still in discussions”.
The company is scheduled to report its December quarter production report on January 29. The West Australian speculates whether that will be the day a bid will be announced as well.
At close to midday, ConsMin shares were up 10c, 4.74%, at $2.21 in higher than normal volume. The Australian share market opened the week on a higher note thanks to a sharp rebound in energy and metals prices on Friday.