Summit recommends Paladin bid

[Summit, 16 April] Summit Resources Ltd has recommended its shareholders accept an improved A$1.18 billion ($1.34 billion) all-share takeover offer by Paladin Resources Ltd. Paladin announced on 12 April that it intended to increase its offer for Summit after its earlier A$1 billion ($792 million) hostile takeover bid was rejected by Summit, which described the offer as "opportunistic and inadequate." Summit's managing director, Alan Eggers, said at the time that the offer did not reflect the value of its uranium, base metal and iron projects. Summit's board of directors unanimously recommended that all Summit shareholders should accept Paladin's revised offer with Eggers saying the benefits of accepting a new offer of one Paladin share for every 1.67 Summit shares outweighed risks of turning down the offer. The offer is scheduled to close on 27 April. The impact that the takeover will have on Summit's recent agreement with Areva is as yet unclear. When Paladin originally made its improved offer a Paladin statement said it welcomed Areva's participation which would "go some way to bridging the capability gaps and nuclear industry inexperience" within Summit.