Arcon Int. Share Discussion Threads

[hypocrite] 03/3/2005 10:40

Who are the independent committee and will they be allowed to see
the company in the best light!!!

I really cant believe this offer is the best that Sir Anthony O'Reilly's
70% can achieve.....
There just has to be other reasons why such an appalling offer
is being made at this time!!!


If the improvements in Arcon's fortunes are for real, and confirmation
of that due to come up in a months or so.....why would he put his GOOD NAME to such a deal???

[hypocrite] 03/3/2005 10:27

Actually I do have a motive other than greed......
I accept my losses and I gratefully accept my gains....
I seek to make a return on my investments, better than
the fund managers, that offer to do it for me.
If my kind of money management, has no malice or devious
rotten, cheating heart, attached to it.....why should
that merit being called greed?

[hypocrite] 03/3/2005 10:21

It may explain why the company did not apply to the High Court
to remove the 80 million write off AOR got from the banks!!!

Caveat Emptor!!!

[hypocrite] 03/3/2005 10:11

I think you forget that it is not a done deal, if the INDEPENDENT commitee
can be established to be truly independent and make their decision in
the light of the upcoming results.....
BUT then after turning down an order from China for 100000 tons at premium
prices, it may be hard even for them to establish the veracity of the
upcoming accounts!!!
Shareholders need reassurance
that the company will be presented in the BEST light......
We need to see the results!!!!
Caveat Emptor!

[benchmark] 03/3/2005 09:58

VenomousViper - that's about it and I wouldn't really hold out much hope of a counter-bid. Certainly the Finns have been retracting rather than expanding (particularly in Ireland). Boliden have been expanding elsewhere although they do have a lot of spare cash.
I think the Arcon-Lundin arrangement is a done deal and, as you say, we take our chances with the Lundin paper. At least, we will hold an interest in a better-managed company than we do at the moment. Also, there appears to be huge prospectivity for base (as well as precious) metals in Scandinavia.

[benchmark] 03/3/2005 09:54

Have you a motivation for buying shares other than greed?

[hypocrite] 03/3/2005 09:53

Assoon as things start to look good....they start to turn sour??
Caveat Emptor!!!

[venomousviper] 03/3/2005 09:49

Then in that case a counter offer is the only hope or take your chances and hold lundin mining paper and see what happens.

[benchmark] 03/3/2005 09:47

The major shareholders are the O'Reilly family ... own around 70% of it I think so no possible chance of blocking it.

[benchmark] 03/3/2005 09:46

BritishBear - Why in heavens name would you bother posting the entire press release when we are all perfectly capable of following the "A" link and reading it for ourselves? You must have little to do!

[venomousviper] 03/3/2005 09:45

Farsical!..Who are the major shareholders and what are they holding?
ie can the bid be blocked .
If it cant ie the major shareholders vote yes then the only saviour for shareholders is a counter bid...possible with the price of Zinc rising.

[britishbear] 03/3/2005 09:44

Big news - city does not like it - effectively a takeover but at a price BELOW the current price. Looks like we will have little choice but to accept unless a white knight arrives. I will NOT accept but this will make no difference of course.
-----------------------------------------------


RNS Number:2848J
Arcon International Resources PLC
03 March 2005



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO, THE UNITED STATES,
AUSTRALIA OR JAPAN

Lundin Mining Corporation ("Lundin Mining")
and
ARCON International Resources P.l.c. ("ARCON")
ANNOUNCE INTENTION TO MERGE

Highlights of the Intended Merger Transaction

*Combination will create a diversified European base metals producer with
aggregate annual zinc production of approximately 152,000 tonnes and lead
production of approximately 46,000 tonnes (each based on year ended December
31, 2004), as well as copper and silver production and a substantial
exploration portfolio

*Enlarged group expected to have combined pro-forma liquid investments of
approximately US$45 million

*Enlarged group's ability to commit resources for, investment in, and
exploration around, the Galmoy mine makes it possible to seek to further
enhance operational efficiencies and expand mine life

*Anticipated improved trading liquidity for shareholders

The Board of Lundin Mining and the Board of ARCON announce that agreement in
principle has been reached on the terms of a merger of the companies which the
Board of ARCON anticipate they will recommend. To effect the proposed merger,
Lundin Mining would make an offer, subject to an 80% minimum acceptance
condition, for the entire issued share capital of ARCON in exchange for US$63
million cash, currently equivalent to approximately Euro0.276 per ARCON Ordinary
Share, and 5.6 million shares in Lundin Mining, currently equivalent to
approximately Euro0.262 per ARCON Ordinary Share (each based on the exchange rates
referred to below). Based on the current issued share capital of both companies
(undiluted) this would result in ARCON shareholders having an aggregate interest
in Lundin Mining following the merger of approximately 14%. Lundin Mining
anticipates making the offer as soon as practicable.

Sir Anthony O'Reilly, the principal shareholder in ARCON, has advised that an
offer on these terms would be acceptable to him.

For the purposes of this announcement, the Board of ARCON is comprised of all
Directors of ARCON other than Mr. Tony O'Reilly Jnr, the current Chairman of
ARCON, who is expected to be appointed to the Board of Lundin Mining following
completion of the merger.

The value of the proposed offer is US$122.7 million, equivalent to approximately
Euro93.6 million (based on a 1.3101 US$/Euro exchange rate, a 1.2431 C$/US$ exchange
rate and the share price of Lundin Mining on March 2, 2005 (being the latest
business day prior to this announcement)) and equating to Euro0.538 per ARCON
Ordinary Share. While this represents a discount to the last dealt price per
ARCON Ordinary Share on the Irish Stock Exchange on March 2, 2005 (being the
latest business day prior to this announcement), the Board of ARCON recognise
that the current ARCON share price follows a short period of strong share price
appreciation, with limited liquidity. Relative to the average closing price per
ARCON Ordinary Share over the twelve, six and three month periods prior to this
announcement, the offer price represents premia of approximately 32%, 35% and
30% respectively.

The Board of ARCON anticipate that they will recommend this offer, once formally
made at this level, having regard particularly to the opportunity represented by
the share element of the offer consideration which provides ARCON shareholders
with the opportunity to retain an interest in ARCON's exploration prospects
around the Galmoy mine, while also participating in the exploration and
production diversification, and improved cash flows of the combined group. Such
a decision is based on the Board's belief that the combination of Galmoy with
Lundin Mining's interests would not only maintain the ability of ARCON
shareholders to capitalise on the prevailing high commodity price environment,
but would also expose ARCON shareholders to a broader asset portfolio and a
group with a strong balance sheet for future growth. The improved cash flows and
cash resources of the combined group will make it possible to further develop
the Galmoy mine by investing in operations, production and exploration, thereby
exploiting the mine's full potential.

Lundin Mining, which is listed on the Toronto Stock Exchange and on the O-list
at Stockholmsborsen (the Stockholm Stock Exchange), is a Canadian mining and
exploration company with a primary focus in Europe. As at December 31, 2004, the
company had cash of approximately C$105 million (US$85 million) and investments
with a market value approaching US$30 million. The principal asset of the
company is the Zinkgruvan mine in Sweden. The mine has been producing zinc, lead
and silver on a continuous basis since 1857, and currently has an estimated
11-year reserve life with additional resources that could support mining for a
further 8 years. Lundin Mining also holds approximately 74% of the shares of
North Atlantic Natural Resources (NAN), a mining and exploration company listed
on the Stockholmsborsen O-list. NAN's primary asset is the Storliden copper and
zinc mine in Northern Sweden. A public offer has been made for the remaining
shares of NAN by Lundin Mining, and is expected to close March 4, 2005. For the
year ended December 31, 2004, the Zinkgruvan mine produced approximately 61,547
tonnes of zinc at cash costs of approximately US$0.23/lb of zinc, while
Storliden produced 22,348 tonnes of zinc at cash costs of approximately US$0.11/
lb zinc (both net of by-product credits). Lundin Mining also holds a large
copper/gold exploration project in the Norbotten Mining District in northern
Sweden. In December 2004, Lundin Mining entered into an agreement with Silver
Wheaton Corporation, whereby Lundin Mining agreed to sell all of its silver
production from Zinkgruvan to Silver Wheaton Corporation for an upfront cash
payment of US$50 million, in addition to 6 million (post-consolidation) Silver
Wheaton shares (ticker symbol: SLW on the TSX), and 30 million Silver Wheaton
warrants (ticker symbol: SLW-W on the TSX), plus an ongoing payment of US$3.90
per ounce of silver produced.

Mr. Lukas Lundin, Chairman of Lundin Mining, said:

"This merger will create a premier zinc mining investment choice for
investors. With three low-cost and profitable mines focused in Europe,
the combined company will generate substantial cash flow which will be
used to further enhance the company's growth strategy. The merger will
combine two quality management teams who can invest immediately in the
Galmoy mine to further enhance operational performance and to seek to
expand the Galmoy mine life through a substantially enhanced exploration
program. The combined entity will continue to have the backing of the
Lundin family, with its track record of adding shareholder value, and
the involvement of Sir Anthony O'Reilly, ARCON's principal shareholder,
who, following completion of the merger, will have a significant
interest in the share capital of Lundin Mining (approximately 9% on an
undiluted basis)."

ARCON is an Irish mining and exploration company that is listed on the main
markets of the Irish Stock Exchange and of the London Stock Exchange. The main
asset of the company is the Galmoy mine located in Kilkenny County, Ireland,
which, following the discovery of the "R" zone in 2003, has been recently
extended by the grant of State Mining Licence No. 8 in respect of part of the
"R" zone. Royalty terms agreed with the Irish Government's Department of
Communications, Marine and Natural Resources on SML 8, all existing licences and
any further new 2005 licences are 1.25% of revenue for the period from March 24,
2001 to June 30, 2006 and 1.75% thereafter until cessation of production. The
Galmoy mine, for the year ended December 31, 2004, produced approximately 69,000
tonnes of zinc and approximately 15,000 tonnes of lead.

Mr. Peter Kidney, Chief Executive of ARCON, said:

"The combination of ARCON and Lundin will be a tremendous opportunity
for ARCON shareholders to participate in the creation of a substantial
European-based base metals company with considerable exploration
potential. The timing of this potential transaction captures the recent
strength in both zinc and lead commodity prices and enhances investor
exposure to them."

The making of the offer is subject to certain conditions including the provision
of an undertaking by Sir Anthony O'Reilly to accept the offer, the obtaining of
all requisite regulatory body approvals and the execution of an agreement
between Lundin Mining and ARCON in regard to the conduct of the proposed merger.

There can be no certainty that an offer will be made, and, if an offer is made,
there can be no certainty as to the terms and conditions of that possible offer.

An independent committee of the Board of ARCON will be established for the
purposes of considering the offer, if and, when it is made. Davy Corporate
Finance Limited have been appointed to provide independent financial advice with
respect to the offer, if and when it is made.

Lundin Mining have appointed Macquarie Bank Limited to provide advice in
relation to the offer.

A further announcement regarding the formal offer will be made in due course.

[hypocrite] 03/3/2005 09:43

Was that because he might make the results too good by doing so,
or that they were already so good that he did'nt need the order?
Why did'nt he tell the market in that interview that they had almost
completed merger discussions!!!
We need and have a right to see the upcoming results, properly
stated, before any decision is taken!!!!

Caveat Emptor!!!

[hypocrite] 03/3/2005 09:41

The Sunday Tribune!!!
27th February 2005

Super half page over 2000 word article on Arcon, a little on Boliden-Tara,
citing Umicore as an example of the zinc refiners, who have stopped selling
the commodity,thus spurring "futures" prices....picture of Arcon CEO, Peter
Kidney, and titled " Good news about to zinc for Ireland's metal industry"...
Kidney quoted saying that he would'nt sell 100000 tons to a single customer in this climate, as he was approached recently to do!!!
Society Generale quoted as saying demand will outstrip production this year,
by 400000 tons and quoting rising prices to continue towards the 1997 high
of $1900.
Kideny admitted to having customers beating down his door, offering him terms
he could'nt have dreamed of before!!!!
Also complimented Arcon's decision to mine lead this year, citing an ever
decreasing supply of lead at $1000 per ton or more!!!!
I love my 300000 shares.....and these guys think this company is worth
a Euro96 million at 55 cents.......
Cant reprint here the article.....Tribune wants 80 quid for an annual
fee to view the website in detail!!!

[benchmark] 03/3/2005 09:26

Well ... its par for the course with the way O'Reilly has treated small shareholders in the past. Some will remember what happened with the progenitor company of Arcon - i.e. Atlantic Resources

[venomousviper] 03/3/2005 09:20

Tanking what an absolute disgrace talk about stitching your shareholders up.
Peeps haver stayed with this through recent very hard times and have now had their lights punched out just as things were starting to pick up..OUTRAGEOUS.!

[hypocrite] 03/3/2005 09:07

Why not announce the results in April first?

However if the O'Reilly family interests plan to railroad the deal through....
then why appoint an independent committee?

Depends I suppose on what you call "independent"....

Another thought is that they were engaged for so long
in these negotiations that Sir Anthony O'Reilly was honour bound
not to go back on the deal, even after the dramatic turnaround
in zinc
Caveat Emptor!!!

[hypocrite] 03/3/2005 09:04

I was'nt too far off in saying the Directors owed the market a statement
on their plans for diversification which they discussed last year!!!!
If I had been right in that it was IVW...that would have been great....
but at first glance this looks like a TAKEOVER....not a merger...
Caveat Emptor!!

[robinbell] 03/3/2005 08:50

I am disgusted with these terms and have emailed the company from their website saying so. Who knows if my email will get read but I plan to telephone later today.

[benchmark] 03/3/2005 08:38

What a pathetic company! Despite the reports last week showing Kidney (Financial Director) rubbing his hands with glee at the strong zinc & lead price and boasting of turning away base-metal customers, they now sell out the entire ranch at a DISCOUNT! One thing I am sure of - behind the scenes and stitched into the small print Sir (!) Anthony won't be a loser.

Hypocrite - maybe this will teach you something about ramping!

[venomousviper] 03/3/2005 08:31

Youve all been well and truly stitched up.From a bright prospect with zinc soaring youre all left with a poxy bid lower than the current share price and some worthless canadian paper you cant trade....lol..!!...but then again disgraceful same old story though small shareholders are always shafted even if the company has a very bright future.

[venomousviper] 03/3/2005 08:06

!!!!!!!!!!!RAFLMAO!!!!!!!!!!!

[hypocrite] 02/3/2005 14:56

IVW is now up to 2.25$ can...by the way!!!

[hypocrite] 02/3/2005 13:29

Dont worry Viper....you wont make too much here!!!
Stop losses swept up this morning!!!