BC Iron Ltd (ASX:BCI) has revealed its shareholder, Hong Kong’s Regent Pacific Group, has abandoned its $345 million friendly takeover offer for the junior iron ore miner.
In January the Perth-based company recommended Regent Pacific's cash takeover bid of $3.30 per share, an all-time-high price for the company.
Regent Pacific Group claims to have terminated the offer due to concerns that a major BC Iron shareholder, Consolidated Minerals, objected to the proposal.
BC Iron says it is perplexed at the steps taken by Regent Pacific, adding that the BC Iron board will reserve its position and consider the matter further.
Regent Pacific holds a 19.87 per cent stake in BC Iron, while Consolidated Minerals has a 21.1 per cent interest.
In the six months to 31 December 2010, BC Iron posted a net profit of $1.3 million.
