BHP Billiton mounts $204m takeover bid for UMC

BHP Billiton (ASX:BHP) has mounted a takeover bid for United Minerals (ASX:UMC), offering $204 million for the company.

The $1.30 per share offer represents a roughly 30% premium on UMC’s weighted average trading price in the week leading up to the announcement.

BHP told UMC its offer is final barring a competing bid. UMC CEO Matthew Hogan advised shareholders to accept the offer.

“The BHP Billiton offer is an attractive proposal. It provides all UMC shareholders with a substantial premium and the certainty of a cash prize,” Hogan said.

UMC’s main asset is the Railware iron ore deposit in Pilbara, Western Australia.