Globe/CP say KWG cancels takeover of Spider
Ticker Symbol: C:KWG C:SPQ

Globe/CP say KWG cancels takeover of Spider

KWG Resources Inc (2) (C:KWG)
Shares Issued 589,549,206
Last Close 7/2/2010 $0.115
Monday July 05 2010 - In the News

Also Spider Resources Inc (C:SPQ) In the News

The Globe and Mail reports in its Saturday edition that KWG Resources cancelled its takeover bid for Spider Resources on Friday, departing the deal with a $2.3-million break fee. A Canadian Press dispatch to The Globe reports the company was in a takeover fight with Cliffs Natural Resources for the junior company. Cliffs had increased its bid to 19 cents per share after locking up support of Spider's board and its largest shareholder, MineralFields Group, which owns 13.8 per cent of Spider shares. Spider's board has agreed to recommend that its shareholders approve the merger with Montreal-based KWG after it matched Cliff's previous 16.5-cent offer -- but that was before Cliffs increased its offer. The Ontario Securities Commission dismissed Friday a move by Cliffs to try to block a shareholders rights plan at Spider. "It appears to the commission that the application is premature considering all the circumstances, and in particular, the ongoing auction between Cliffs and KWG for Spider," the regulator said. KWG and Spider shares finished Friday unchanged at 11.5 cents and 18.5 cents. KWG and Spider shares have a one-year range of 2.5 cents and 2.5 cents to 15 cents and 19 cents.

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