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Australia's GRD backs A$106 mln offer from UK's AMEC

Sun Jul 19, 2009 7:36pm EDT

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MELBOURNE, July 20 (Reuters) - Australian mine engineering contractor GRD Ltd GRD.AX on Monday recommended a A$106 million ($85 million) takeover offer from UK engineering firm AMEC Plc (AMEC.L).

AMEC made the offer of A$0.55 a share in cash in June, looking to expand in mining services.

The offer price is 11 percent above GRD's closing share price on Friday and 34 percent above its price on June 10, the day before it said it had received the offer.

"The board believes the cash offer from AMEC represents a good opportunity for GRD shareholders to realise value and secure an attractive premium in an uncertain market environment," GRD Chairman Richard Court said in a statement.

The takeover needs to be approved by GRD's shareholders. ($1=1.246 Australian Dollar) (Reporting by Sonali Paul; Editing by Jonathan Standing)



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