4:30 PM Sydney – Australian stocks traded higher ahead of the Reserve Bank of Australia rate decision tomorrow. China controlled Minmetals Resources launched $6.3 billion offer for Equinox Minerals. Cellestis, the diagnostic technology company agreed to a takeover of $341 million from the Frankfurt listed Qiagen.
Stocks in Australia closed higher ahead of rate decision from the Reserve Bank of Australia tomorrow. Rising inflation and improving job picture is expected to factor in the rate decision which is at 4.75%.
The ASX index increased 25 or 0.5% to 4,886.80 and All Ordinaries Index gained 30.1 or 0.6% to 4,984.70.
The Australian dollar increased to US$1.0417 before settling at US$1.0391. Crude oil increased 60 cents to US$108.54.
Minmetals Launches Equinox Offer
Mimmetals Resources launched a C$7 a share offer for Perth based Equinox Minerals. The bid values the copper miner at C$6.3 billion and is lower than market expectations.
The jump in copper prices had lifted the expectations of higher bid with analysts estimating copper price as much as $12,000 a ton.
Andrew Michelmore, chief executive of the company said “C$7 a share is an attractive price.”
The offer is conditional that Equinox drops its bid for Canada based Lundin Mining.
Equinox Minerals soared $1.64 or 28.7% to $7.35 after Minmetals Resources launched C$6.3 billion offer of C$7 or $6.99 a share. The bid values the company at C$6.3 billion.
Minmetals Resources Ltd increased 2.4% to HK$6.72 in Hong Kong trading.
BHP Billiton increased 20 cents to $46.88 and Rio Tinto added 65 cents to $85.50.
Energy companies closed higher tracking the gains in crude oil prices. Santos increased 10 cents to $16.50. The company discovered more gas at its field located in Carnarvon Basin in Western Australia.
Oil Search increased 14 cents or 2% to $7.27.
Four leading banks closed mixed.
Westpac declined 9 cents to $24.32 and National Australia Bank increased 7 cents to $26.05 and ANZ declined 1 cent to $23.86. Commonwealth Bank fell 30 cents to $52.44.
Cellestis increased as much as $3.49 after the diagnostic technology company agreed to a takeover of $341 million from the Frankfurt listed Qiagen. The offer of $3.55 a share is at 18% premium from Friday’s close price or 32% premium from 3-month volume weighted average.
The company is known for the technology for the treatment of latent tuberculosis.