Brian Gilbertson’s Pallinghurst has made an improved cash bid of A$3.30 (142.5p) a share for Consolidated Minerals, whose board is recommending it.

The new offer from Pallinghurst is worth around 18 per cent more than its original proposal. It puts a value of some £325 million on AIM and Australia-quoted manganese and nickel group ConsMins, though Pallinghurst is clear it is only targeting 60 per cent ownership and would accept a bare majority of 50.1 per cent.

Pallinghurst’s new bid puts a significantly lower value on ConsMins than the rival £400 million-plus offer on the table from Aussie-quoted Territory Resources, steered by ConsMins’ pugnacious ex-boss Michael Kiernan. But it appeals to the ConsMins board because it is all cash, fully funded and involves no extra debt, while Territory is bidding in shares and cash and would have to borrow in the region of £181 million from ConsMins customers and others.

Under the Pallinghurst plan, ConsMins would retain its share quote, and its chairman Dick Carter and managing director Rod Baxter would keep their jobs. With ex-BHP Billiton chief Gilbertson at the helm, Pallinghurst claims its presence as the controlling shareholder would bring ConsMins 'enhanced access to high-quality local and global project opportunities'.

ConsMIns has agreed to pay more than £2 million as a 'break fee' to Pallinghurst if the ConsMins board ceases to recommend its bid and ConsMins’ directors have accepted it for 670 per cent of their shareholding. ConsMins spokesmen say they have not yet heard any reaction from Territory Resources.

At 143.5p, down 4p this morning, ConsMins shares, which hit 189.5p in 2005, reflect a feeling that Pallinghurst could be the winner, though Kiernan is a determined man. They are still more than twice Growth Company Investor's recommendation last October and continue to be worth holding.

Consolidated Minerals	AIM	0pm	p	p
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ConsMins welcomes better offer			06/09/2007