Katanga Mining Ltd.'s shares jumped about 10 percent in heavy activity on Wednesday after the tiny copper miner made moves to block a rival company from gobbling up its stock in a creeping takeover bid.
The shares of the company, which rehabilitates mines and plants near Kolwezi in the Katanga province of the Democratic Republic of Congo, were up C$1.44, or 9.1 percent, at C$17.24 on the Toronto Stock Exchange by late morning, after racing as high as C$17.35 earlier in the session.
Volume was a heavy 1.6 million shares.
Katanga said on Tuesday that it was asking the Ontario Securities Commission to prohibit Central African Mining and Exploration Plc from buying its shares, arguing that CAMEC's actions "have contravened Ontario's takeover provisions."
CAMEC has accumulated a 22 percent stake in Katanga through a number of stock purchases and has said it intends to acquire additional shares.
Under OSC regulations, with CAMEC having accumulated more than 20 percent of Katanga, it can complete up to five additional transactions and pay no more than a 15 percent premium to market prices.
OSC regulations also restrict CAMEC from buying more than 5 percent of the outstanding shares during any one-year period.
"We believe that CAMEC is interested in only one thing -- a takeover of Katanga," Kerry Smith, an analyst at Haywood Securities wrote in a research report. "With these restrictions in place, the next logical step would be to bid for the company."
Smith boosted his stock price target to C$18.00 a share from his previous target of C$14.15 in anticipation of a takeover offer of about C$18.00 a share.
($1=$1.11 Canadian)
ADS SPACE HERE
KODE PPC ANDA
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment