(Reuters) – Australian iron ore miner Atlas Iron (AGO.AX) said on Tuesday that it would give Mineral Resources (MIN.AX) three business days to match a buyout offer made from Hancock Prospecting.
Australian billionaire Gina Rinehart’s Hancock Prospecting and mining services group Mineral Resources are waging a bidding battle for Atlas, which operates in the iron ore rich Pilbara region of Western Australia and has undeveloped tenements.
Hancock had offered A$0.042 per Atlas share, or A$390 million ($289 million) on Monday, substantially more than Mineral Resources’ A$280 million offer made in April. Hancock said last week it had built up a 19.96 percent stake in Atlas.
World No. 4 iron ore miner Fortescue (FMG.AX) has also built up 19.9 percent in Atlas, a stake large enough to block Mineral Resources’ offer.