Noble, POSCO group drop US$1.2b Arrium bid

A consortium including Noble Group Ltd and POSCO dropped a A$1.2 billion (US$1.24 billion) takeover bid for Australia’s Arrium Ltd after a sweetened offer was rejected on valuation grounds.

Shares in Arrium, which produces steel products, mines iron ore and sells mining consumables, had jumped nearly 6 per cent after it revealed the A$0.88 bid, but closed down 1.9 per cent at A$0.785 cents on concerns the bid would not proceed.

“Steelmakers Australia has determined it will cease seeking engagement with the Arrium Board,” the bidding consortium said in a statement.

via Business feed http://www.scmp.com/business/companies/article/1073935/noble-posco-group-drop-us12b-arrium-bid