China's Hanlong makes $1.5 billion bid for Sundance

Mon Jul 18, 2011

* Hanlong wants all of African iron ore developer Sundance

* Will pay A$0.50 a share, valuing Sundance at $1.5 bln

* Sundance says take no action

* Sundance questions adequacy of bid

* Sundance shares jump 20 pct

By James Regan

SYDNEY, July 18 (Reuters) - China's Sichuan Hanlong Group made a bid to buy out the shares it doesn't already own in West African iron ore exploration company Sundance Resources , valuing the private conglomerate at A$1.4 billion ($1.5 billion).

Last week, Hanlong, which is seeking to expand its reach in global resources,launched a A$144 million takeover bid for Bannerman Resources , which is looking for uranium in Namibia.

Hanlong is already Sundance's majority shareholder with 18.6 percent of the company.

West Africa is fast emerging as an upcoming global iron ore province. Despite the region's turmoil in recent years, West Africa has attracted a lot of attention from the likes of Rio Tinto , Vale , and Xstrata in countries including Guinea, Mauritania, Sierra Leone and Republic of Congo.

Sundance's board is recommending its shareholders take no action until it meets with Hanlong over the terms of the bid, which Sundance deems inadequate, according to a company statement.

Hanlong's A$0.50 a share offer is a 25 percent premium to Sundance's closing price of A$0.40 on Friday. By 0425 GMT, the shares were up 20 percent.

(sourced Thomson Reuters)