MARKET TALK: Ivanhoe In Play After Lifting Share Issue Cap

13th Jul 2010 16:23

1523 GMT [Dow Jones] "Ivanhoe (IVN.T) is in play" after the Canadian miner gave Rio Tinto (RTP) notice that it was terminating its Strategic Purchaser Covenant, says Raymond Goldie of Salman Partners. "If there were to be a take-out, we consider...C$19.85/share to be a likely figure at which the company could be taken over," Goldie says. The Strategic Purchaser Covenant restricted Ivanhoe's ability to issue more than 5% of its common shares to a strategic investor. Upon termination of the covenant, Ivanhoe can now issue more than 5% of its shares to a strategic investor although Rio Tinto still has the right of first refusal. Ivanhoe shares +13% at C$16.90, Rio Tinto +0.7% at 3124p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 13, 2010 11:23 ET (15:23 GMT)