herald-reluctantly-endorses-bumi-bid

Herald reluctantly endorses Bumi bid

Australian mining company Herald Resources advises its shareholders to accept a bid from Indonesia's Bumi despite deeming the $392 million offer too low. Herald continues to engage other bidders.
Australian zinc miner Herald Resources has advised its shareholders to accept, in the absence of a superior proposal, an offer made by Indonesian coal mining company Bumi Resources, only a month after it described the move as ôhostile and unsolicitedö. Bumi has valued Herald at A$455 million $392 million.

The decision comes following significant turmoil in global financial markets, which caused AustraliaÆs benchmark index to fall 7% on Tuesday in its tenth straight day of declines. Herald has accepted the offer, subject to not attracting a higher bid, in view of uncertainties surrounding both market conditions and approvals for the exploitation of its key asset, the Dairi project in Indonesia.

Bumi, through its wholly-owned...
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