Australia’s Arrium rejects sweetened bid

Australia’s Arrium Ltd rejected a sweetened A$1.2 billion (US$1.24 billion) takeover offer from a consortium including Noble Group Ltd and POSCO, saying the 17 per cent increase still undervalued the firm.

Shares in Arrium, which mines iron ore and also sells mining consumables, jumped nearly 6 per cent after the announcement, before slipping back to up 2 per cent at 81.5 cents by 0217 GMT.

Arrium’s quick rebuff of the 88 Australian cents a share offer, 10 per cent above its closing share price on Tuesday, indicates a much higher bid may be necessary.

via Business feed http://www.scmp.com/business/companies/article/1073819/australias-arrium-rejects-sweetened-bid