Hong Kong-listed resources investor Regent Pacific has dropped its A$345 million (HK$2.71 billion) bid for BC Iron, sparking sharp criticism from the Australian miner.
Regent and BC Iron, which owns iron ore mines in Western Australia's Pilbara region, had looked set to walk up the aisle. But yesterday, Regent blamed its target company's major shareholder, Ukranian billionaire Gennadiy Bogolyubov's Consolidated Minerals, for its decision to leave the bride at the altar.
In a statement, Regent said it could not continue with its agreed offer for BC Iron because Consmin, which owns 21 per cent of the Perth based business, had 'flatly opposed' the takeover.
Consmin did not issue an announcement, while a spokesperson declined to comment.
Regent's shares fell 12 per cent on the news, closing at 38 HK cents.
And in a rare example of one public company severely criticising another, BC Iron claimed in an Australian Stock Exchange statement that Regent had acted inappropriately. BC Iron's shareholders were not set to vote on the buyout until mid-April.
'The BC Iron board is perplexed at the steps taken by Regent Pacific,' the Perth-based iron ore miner said.
