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Norton's offer for Bullabulling gains traction

Norton's offer for Bullabulling gains traction

Photo by Bloomberg

1st July 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Gold miner Norton Gold Fields has increased its shareholding in takeover target Bullabulling Gold to 41.35%, prompting an increased offer clause.

In June, Norton increased its takeover offer for Bullabulling from 7c a share to 8c a share, on the condition that the company obtained a relevant interest of 30% or more in the takeover target by June 30.

Norton has increased its shareholding in Bullabulling despite the takeover target’s insistence that the offer price was inadequate and opportunistic. The Bullabulling directors have maintained their recommendation that shareholders reject the Norton offer.

However, Norton said on Tuesday that the recent support of the offer emphasised the attractiveness of the revised offer price, with the increased offer likely to result in more shareholders accepting the offer.

The company has again recommended that shareholders accept the offer, warning that stubborn investors could become minority shareholders in a company controlled by Norton.

Norton has further warned that the company would not increase its takeover price.

Edited by Creamer Media Reporter

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