Qld: MIM shareholders may have reason to smile

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Qld: MIM shareholders may have reason to smile

BRISBANE, April 8 AAP - MIM Holding Ltd's long-suffering shareholders may finally havereason to smile.

After a long courtship, Swiss-based coal group Xstrata Plc yesterday pitched a $4.93billion friendly takeover offer to its Australian rival, the world's fifth largest coalexporter.

Xstrata will pay $1.72 a share in cash for each MIM share, valuing the group at $3.44 billion.

The MIM board has recommended the bid but the final decision will be up to shareholders.

Queensland government politicians have expressed dismay at losing another Australiancompany into foreign hands and are clearly worried the takeover will mean job losses.

Police Minister Tony McGrady, the member for Mount Isa where MIM started its operationsabout 80 years ago, said no Queenslander could feel good about the prospect of a Queensland-growncompany passing into foreign hands.

"If the sale of MIM Holdings to a Swiss company went ahead, it would be a melancholyday for Queensland," Mr McGrady said in a statement.

Mines Minister Stephen Robertson said if the deal succeeded, subject to Foreign InvestmentReview Board approval, the government would seek urgent confirmation from Xstrata thatit would not impact on employment.

"It's sad that a Queensland corporate icon like MIM is being taken over by foreigninterests but that's a commercial decision," he told AAP.

"We will be seeking assurances that company head office operations are maintained inBrisbane and that employment levels are maintained in both Brisbane and Mt Isa."

Nevertheless, the deal looks good for shareholders.

MIM shares have not traded above Xstrata's $1.72 offer price in five and a half years.

AAP jhm/mg/br

KEYWORD: MIM DAYLEAD