The belle of the ball is no longer limited to the Beijing two-step and is free to dance with whomever she pleases.
Potential Noranda (NRD-T) suitor,
Noranda says negotiations with Minmetals are continuing on a “non-exclusive” basis.
Minmetals had been in exclusive talks since late September regarding the acquisition of 100% of Noranda’s common shares, 42% of which are owned by Toronto-based
Brascan said in September that Minmetals’ preliminary plan was to acquire, mostly for cash, all of Noranda’s shares at “a small premium to the recent trading level of Noranda’s common shares.”
The Canadian miner’s market value tallies to $6.35 billion, based on its closing price of $21.30 per share in Toronto on Nov. 16. Noranda has a long-term debt of slightly less than US$3 billion.
Minmetals’ non-binding proposal would also see Noranda’s aluminum division spun off as a separate enterprise in a distribution to shareholders.
Many pundits are suggesting that with Noranda swallowed, it would only be a matter of time, and perhaps an easing of metal prices, before Minmetals would move to consolidate ownership of
Minmetals, formerly China National Metals & Minerals Import & Export Corp., is a major metals trader, which had about US$12 billion in revenue in 2003. It is listed on the Shanghai Stock Exchange but is directly controlled by the Communist Party of China’s Working Committee for Large Enterprises.
Any deal for Noranda would be subject to approval by the Canadian government.
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