Arrium Limited
(ASX:ARI) has rejected a takeover bid from a consortium including Singapore’s Noble Group and Korea’s POSCO.
The mining group says the unsolicited and conditional offer of 75 cents per Arrium share undervalues the company. The offer represents a premium of 37.6 per cent to Arrium’s last closing price of $0.545.
Chairman Peter Smedley says the proposal is highly conditional and comes with significant risk and at a time of volatile commodity prices and market conditions.
Arrium changed its name from OneSteel earlier this year to reflect its broadening focus on mining, mining consumables and steel.
Arrium reported a net profit of $63.6 million in the 2012 financial year.
