Peru Milpo says revised Votorantim offer too low

LIMA, April 17 (Reuters) - Peruvian miner Milpo (MIL.LM: Quote, Profile, Research, Stock Buzz) (MILi.LM: Quote, Profile, Research, Stock Buzz) said a second takeover offer from Brazil's Votorantim still undervalues its share price.

In a letter on the web site of Peru's securities regulator on Thursday, Milpo said its board of directors "maintains the position" expressed earlier this month that urged shareholders to consider the miner's outlook and performance before participating in the public offer.

"The board of directors at Milpo maintains the position expressed in the report sent April 4," said the letter.

On April 4, Milpo said "Investors should know that Milpo's current share price is higher than the price that was offered."

Last week, Votorantim raised its offer to up to $490 million, or $3.33 a share, up from initial offer to pay up to $422, or $2.87 a share.

On Thursday, Milpo's shares were trading at 9.65 soles ($3.55) on Lima's stock exchange.

If the offer is successful, Votorantim, the world's third largest zinc producer, would own 51 percent of the Milpo's circulating shares, giving it effective control of the company.

Milpo, which produces zinc, iron and copper, says it runs some of the lowest-cost mines in the world and has large exploration team.

($1 = 2.71) (Reporting by Teresa Cespedes; Writing by Dana Ford; Editing by Marguerita Choy)