[R]3:00AM New York, 7:00PM Sydney - ASX 200 index lost 2.3% after financial stocks declined.[/R]

Market Sentiments

ASX 200 index shed 2.3% or 119.9 to close at 5,087 as stock indexes in Asia fell. The fire sale of Bear Stearns at 90% below its Friday close price to JP Morgan shook investors around the world. Only a week ago the fifth the largest U.S. investment banker was valued at $4 billion.

The preliminary market turnover was 1.27 billion worth $5.07 billion, with 644 stocks moving up, 521 moving down and 340 unchanged.

Market Driver

Australia''s biggest publicly traded power producer, Babcock & Brown Power''s share fell 10 %. The decline came on the back of investor concerns about its ability to refinance debt and fund expansion. The stock has plunged 46% in the past six months.

Babcock Power last month indicated that it was ``well advanced'''' in refinancing $3.1 billion of debt, boosted by investments and acquisitions that increased the size of its generation portfolio by 70% since December 2006 initial share sale.

Babcock Infrastructure, which also fell, indicated that it had spent $15 billion in acquiring new assets.

Gainers and losers

Of the ASX 200 index stocks, Sino Gold Mining led the gainers with a rise of 5.7% followed by increases in Envestra Ltd of 5%, in Oil Search Ltd of 4.9%, in Gwa Intl Ltd of 4.7%, and in Lihir gold Ltd of 4.6%.

Of the ASX 200 index stocks, Allco Finance Group led the decliners with a fall of 17.4% followed by losses in Macquarie Office of 12.4%, in City Pacific Ltd of 11%, in Dexus Property Ltd of 11% and in ING Office Fund of 10.5%.

Bumi bid in Limbo as Herald shifts support to rival bid

Indonesia''s largest coal miner PT Bumi Resources takeover bid for zinc miner Herald Resources Ltd was left in limbo today after Herald backed a rival $505 million offer by Indonesian state-controlled mining group PT Antam and Chinese government-backed miner Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd.

Herald today withdrew its recommendation for the $2.25-a-share Bumi bid and instead recommended the $2.50-a-share offer by Tango Mining Pte Ltd.

Tango is the Singapore-based bidding vehicle for Indonesian state-controlled mining group PT Antam Tbk and Chinese government-backed miner Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd. The Tango offer is subject to a minimum acceptance of 50.1% and Foreign Investment Review Board approval.

Bumi today announced that it was yet to conclude on debt funding to partially finance its $444.8 million takeover bid for Herald Resources Ltd and expected to be completed by March 15.

Bumi has extended the date by which the debt facility must be executed to April 4, the expiry date of its offer, and is likely to have a debt through Credit Suisse of US$375 million. Herald Resources shares have been trading above the offer price and were one cent higher at $2.65.

Bumi and Tango are keen to gain control of Herald''s US$220 million ($237.61 million) zinc-lead Dairi project in north Sumatra, which is 20 per cent held by Antam. Herald has been waiting more than two years for the necessary environmental approvals to commence underground mining at Dairi.

Sims Group and Metal Management concludes merger

Sims Group Ltd boss Jeremy Sutcliffe today stepped down from his post at the world''s largest scrap metal recycler after it sealed a $1.71 billion merger with US-based Metal Management Inc.