Rinehart offers to sweeten bid for Atlas Iron
Gina Rinehart has dangled the carrot of a 6 per cent higher offer price for junior miner Atlas Iron, in a move that seems aimed at fellow billionaire Andrew Forrest.
Redstone Corp, a wholly owned subsidiary of Mrs Rinehart's Hancock Prospecting, said it would pay 4.45¢ a share, up from 4.2¢ previously, provided it had secured at least 87 per cent voting power in Atlas by the time its offer closed.
The Redstone offer period has been extended by a week until September 21.
Redstone's voting power in Atlas has been increasing steadily in recent times and is currently estimated to be around 76.3 per cent.
Fortescue's holding in Atlas, although now down to about 11.37 per cent according to a recent filing, remains an obstacle to Redstone.
Hancock chief executive Garry Korte urged remaining Atlas shareholders to accept the Redstone offer before it closed.
“The strength of acceptances to date has been pleasing, with Hancock’s voting power in Atlas now exceeding 76 per cent," he said. "Following today’s announcement, should Hancock’s voting power increase to not less than 87 per cent, then all Atlas shareholders who accept, or have already accepted the offer, will benefit from the increased offer price of $0.0445 per Atlas share.
"Support from the remaining Atlas shareholders will allow all Atlas shareholders who have already accepted the offer to benefit from a higher price," he said.
On Thursday, shares in Atlas closed at 4.4¢, up from about 3¢ before Fortescue revealed its holding.
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