News

Questionable bid for seabed miner

Prospective seabed miner Nautilus Minerals says it has still received no offer from rebel investor Michael Bailey on a takeover bid, and can't confirm whether the trader's offer is legitimate.

In a statement Nautilus said while Bailey had released numerous press releases claiming his intention to launch a takeover, there had so far been no real negotiation.

The company said its two largest shareholders, Metalloinvest and MB Holding, had also received no communication from Bailey.

“Given the unusual events to date, and the knowledge that a similar offer has been announced by Bailey in the past, the board of directors is unable to make any determination regarding the validity of the offer,” Nautilus said.

In 2010 Bailey made a similar unsolicited bid for Toronto-listed Vaaldiam Resources, but later claimed he had no intention of proceeding with an offer.

After news of Bailey's offer broke last week London-based brokerage SP Angel claimed the offer appeared to be a “crude ruse to either flush out another offer or spoof the market into buying stock at elevated levels”.

Send this to a friend