BHP (ASX:BHP) rules out higher bid to acquire Noront

Mining giant BHP (ASX:BHP) says it will not increase or extend its offer to acquire Noront Resources, and will therefore not match the bid by Wyloo Metals.

BHP refers to its $0.75 per share offer, and Wyloo Metals proposal to acquire Noront for $1.10 per share under the support agreement between Noront and BHP, and as a result BHP had the right to match or disregard Wyloos proposal.

“While the Eagle’s Nest deposit is a promising resource, we do not see adequate long-term value for BHP shareholders to support an increase in BHP’s offer in order to match the $1.10 per share proposal from Wyloo Metals Pty Ltd,” said BHP chief development officer Johan van Jaarsveld.

Shares in BHP (ASX:BHP) are trading 0.3 per cent lower at $41.59.