Metals giant trims stake
FORTESCUE Metals has reduced its stake in Atlas Iron, paring back its position in the junior miner, a month after a battle for control was won by Gina Rinehart’s Hancock Prospecting.
Fortescue, backed by Andrew Forrest, yesterday announced it had cut its stake in the loss- making Pilbara junior from 19.9 per cent to 11.37 per cent.
It had built up a blocking stake in Atlas in June when it was a takeover target for then - suitor Mineral Resources, backed by Perth mining identity Chris Ellison.
Atlas ultimately endorsed a $ 390 million offer from Hancock in a battle where some of the biggest names in the nation’s mining industry squared off.
Fortescue’s move to trim back its holding in Atlas is all but a concession that Mrs Rinehart has won the bidding war. But its stake remains big enough to stop Mrs Rinehart from reaching the 90 per cent shareholder threshold that would allow her to compulsorily acquire remaining Atlas shares.
“Fortescue looks forward to participating in the future of Atlas Iron and is confident that the directors of Atlas Iron will continue to act in the best interests of all shareholders,” Fortescue CEO Elizabeth Gaines said.
Hancock and Fortescue covet Atlas’s rights at Australia’s biggest iron ore port, Western Australia’s Port Hedland.
The Western Australian government has said it will discuss with mining companies how Atlas’s port capacity — historically reserved for junior miners — should be allocated under a change of ownership.
“Fortescue will actively participate in the proposed industry consultation with the Western Australian State Government regarding berth access at Port Hedland,” Ms Gaines said.
Shares in Fortescue climbed 0.9 per cent, or 4c, yesterday to $ 4.34.