Sempra Metals confirms sale of stake in Allegiance

NEW YORK, Nov 16 (Reuters) - U.S. commodities trader Sempra Metals (SRE.N: Quote, Profile, Research, Stock Buzz) confirmed that it sold a 4.65 percent stake in Australian nickel group Allegiance Mining NL's AGM.AX earlier this week.

"We confirm that Sempra Commodities did sell its 4.65 percent in the Australian mining firm Allegiance," a company spokesman said.

Earlier this week, Allegiance stock leapt more than 6 percent on talk that Sempra sold its Allegiance stake at a premium to the market price, sparking speculation that another party was building up a stake for a takeover bid.

But Sempra's spokesman told Reuters on Friday that it sold its Allegiance stake into the equity market, not privately.

"In terms of the sale of the Allegiance shares, we sold them in the market. It was not a private sale," he said.

As to whether the shares were sold at a premium, the spokesman said the sale price was proprietary information.

Some analysts speculated that a rise in Allegiance's share price was linked to a potential takeover offer as it prepares to begin mining in the first quarter of 2008.

The Sempra spokesman declined comment on why it got rid of its long-held Allegiance stake.

Sempra had been vying to reach a supply agreement with Allegiance over nickel concentrate mined from Allegiance's Avebury lode under construction on the Australian island state of Tasmania.