Founders offer for ENRC included Kazakhmys shares -report

LONDON Sun May 19, 2013 8:29am EDT

LONDON May 19 (Reuters) - The offer for miner ENRC made by its founding shareholders and the Kazakh government included shares in rival miner Kazakhmys, a British newspaper reported on Sunday.

The board of ENRC on Friday rejected the proposed buyout of the trouble Kazakh miner's minority investors, giving the consortium two weeks to come up with an improved bid.

The rejected offer was 260 pence per share, The Sunday Times reported. Shareholders would have received 175 pence per share in cash, plus 0.23 of a share in Kazakhmys, which has a 20 percent stake in ENRC.

The shares would not be new shares from Kazakhmys, but would come from the Kazakh government's large holding in the company, the report said, citing senior sources at ENRC.

ENRC's shares closed on Friday at just under 272 pence.

ENRC declined to comment and the consortium were not immediately available to comment.

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