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Aquila Resources Limited (ASX:AQA) has backed a $1.4 billion takeover bid from Chinese giant Baosteel and coal haulage company Aurizon Holdings Limited (ASX:AZJ).Takeover target Aqila has today asked shareholders accept the offer of $3.40 cash per share after the bidders last week warned the offer will close on July 11.The company has also revealed it received a conditional off-market takeover offer from Mineral Resources Limited (ASX:MIN) earlier this week valued at $3.75 cents per share.However Aquila says it was unable to agree on acceptable terms with Mineral Resources and as a result has ceased talks and cannot recommend the proposal.
The news comes after Mineral Resources took a 12.78 per cent stake in Aquila last week. Aquila says Mineral Resources Executive Chairman and 29 per cent Aquila shareholder, Tony Poli will accept Baosteel and Aurizon’s offer in the absence of a superior proposal.Aquila Resources reported a net loss of $590,000 in the first half of the 2014 financial year.
