Fortescue in on Atlas

IRON ore miner Fortescue Metals has bought a 15 per cent stake in Pilbara miner Atlas Iron and says it will not support a takeover of Atlas by Mineral Resources on its current terms.

Fortescue also has an indirect interest in another 4.9 per cent of Atlas Iron’s shares, bringing its total physical and economic interest to 19.9 per cent. “Fortescue does not intend to support the proposed scheme of arrangement between Atlas Iron and Mineral Resources on its current terms, but reserves the right to do so,” Fortescue said in a statement.

In April, Atlas agreed to a $280 million takeover offer, under which Mineral Resources agreed to acquire all of the shares of Atlas Iron via a scheme of arrangement.

The offer represents a 59 per cent premium to Atlas’s market value on April 4.