Minara tells investors to accept Glencore bid

LONDON, Sept 19 Mon Sep 19, 2011 5:56am EDT

LONDON, Sept 19 (Reuters) - Minara Resources , Australia's no. 2 nickel miner, said shareholders should accept an A$268 million ($278 million) offer from global commodities trader Glencore , which last month bid for the shares it does not already own.

Minara is 73 percent owned by Glencore.

Glencore, which dropped its conditions on the offer last week, said last month it would offer A$0.87 per share, a 36 percent premium to the closing price before the offer was announced.

Minara's independent directors said on Monday the offer was a "fair reflection of the underlying value" of the stock and there was "no practical possibility of a superior competing proposal emerging".

"We unanimously recommend that you accept the Glencore offer," chairman Malcolm Macpherson said.

Minara, which operates the Murrin Murrin nickel mine in Western Australia, is targeting production of 33,000-37,000 tonnes of nickel in 2011, second to BHP Billiton's Nickel West division.

The offer will close on Oct. 10. ($1 = 0.964 dollar) (Reporting by Clara Ferreira-Marques; Editing by Dan Lalor)

FILED UNDER: