Mining(1770)

LONDON (ShareCast) - Copper miner Kazakhmys has rejected an indicative £7.05bn bid approach from fellow Kazakh miner Eurasian Natural Resources (ENRC).

ENRC, which last month was given a “put up or shut up” deadline of 16 May by the Takeover Panel, sent Kazakhmys a non-binding indicative proposal that valued each Kazakhmys share at about 1,550p.

Under the terms of the proposal ENRC would offer 1,022p in cash 0.413 ENRC shares per Kazakhmys, with the equity element representing Kazakmys’s current holding in ENRC.

The board of Kazakhmys unanimously rejected the proposal from ENRC, noting that the offer value of 1,550p per share is well below the current Kazakhmys share price.

ENRC is the world's biggest producer of ferrochrome and a major iron ore exporter. It is worth about £16.8bn, while Kazakmys is valued at around £8.1bn at Friday’s closing prices.

• News Channel