Base Resources Limited
(ASX:BSE) has had its unsolicited takeover offer of World Titanium Resources
(ASX:WTR) firmly rejected.
The board of WTR says the offer, of one share in Base for five WTR shares is a high risk proposal doomed to failure. The non-cash offer prices the WTR shares below their current trading price of 4 cents and is highly conditional. The bid is subject to a minimum 40 per cent acceptance and WTR says more than 60 per cent of its shareholders including major share holders have said they will not accept the bid in any circumstance.
WTR also claims that Base has no experience or relationships in the highly socio-political operating environment of WTR assets in Madagascar and will not reasonably be able to manage risks and uncertainties in the business.
WTR recommends share holders reject the offer.
Base Resources made a net loss of $14.07 million in the 2014 financial year.
