MRE Metrics Real Estate Multi Strategy Fund

Shareholders in Minara Resources Ltd. (MRE.AU) should take no action on Glencore International PLC's (GLEN.LN) offer to buy out minority shareholders in the nickel miner until after the preparation of a report assessing whether the offer is fair, Minara's board said Friday.

In a note to shareholders, the company said it would send out a target's statement by the end of September with a recommendation on whether or not to accept the bid, which values the company at A$1.02 billion.

"In view of the timing of Glencore's offer, we strongly recommend that you take no action in relation to Glencore's offer until after you receive our target's statement," the company said.

The reference to timing draws attention to Minara's recent share price weakness, which has fallen from a peak of 97 Australian cents on Jan. 4. Minara in May cut its expected full-year nickel production guidance by 22% and the price of nickel futures on the London Metal Exchange is currently 27% below its average level during February.

However, such claims of opportunistic timing are a typical feature of takeover battles, and Glencore's 87 cents-a-share offer is at a 25% premium to the company's three-month average share price.

Glencore already owns 73.44% of Minara and 40% of its Murrin Murrin nickel mine, and has two directors on Minara's board.

Minara shares are trading at 88 cents, marginally above Glencore's offer, and market participants are in little doubt the offer will succeed.

-By David Fickling, Dow Jones Newswires; +61 2 8272 4689; david.fickling@dowjones.com

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