Berkeley Resources and Severstal talks stall

30th Dec 2010 09:49

Uranium miner Berkeley Resources has confirmed that the bid exclusivity granted to Russian giant Severstal expired on 29 December after the two parties could not agree a price for a takeover. Severstal's right to subscribe for shares in Berkeley remains in force until 14 January but is only exercisable if it announces an intention to make a takeover bid on or before that date. Berkeley added that it has has received an alternative transaction proposal from Severstal and will continue discussions with in relation to this proposal.After recent substantial improvements in the price of uranium and the valuation of uranium assets, the directors have also decided to look at other financing alternatives, Berkeley said.Severstal, which is majority owned by the billionaire Alexey Mordashov made an approach in October valuing Berkeley at just shy of £200m.