The Rising Influence of Rising Affluence

[DewDiligence]

Noront Seeks to Outbid CLF for Freewest’s Chromite Mines

[If I were on the BoD of CLF, I would let Noront take it for the reasons mentioned in the prologue of #msg-43909449.]

http://www.reuters.com/article/marketsNews/idAFBNG41381720091130

›Mon Nov 30, 2009 7:20am EST

Noront increased its offer for Freewest to about C$222 million ($210.4 million) as it looks to consolidate its nickel and chrome deposits in northern Ontario.

Under the new offer, Noront will issue two freely tradeable shares and a full five-year purchase warrant with a strike price of C$4 for each seven Freewest shares held, valuing Freewest at 86 Canadian cents a share.

The latest offer from Noront represents a premium of 34 percent to Freewest's Friday closing price of 64 Canadian cents.

Montreal-based Freewest had been fending off a C$90 million hostile bid from rival Noront since October, describing it as "highly opportunistic."

Last week, Cliffs Natural (CLF) agreed to buy Freewest for roughly C$150 million, and Freewest said its board unanimously supported the offer and recommended that all Freewest shareholders accept it.

Noront said its latest offer will expire on Dec. 11 and will not be increased.‹