AAP reported that failed former Pilbara iron ore miner Murchison Metals has asked investors to support its buy back of shares before the company is wound up, but its largest shareholder won't be involved.
Mercantile Investment, the listed investment arm chaired by corporate raider Sir Ron Brierley and 17% shareholder, rejects the plan as it stands.
Recently, Sir Ron successfully sought the departure of two Murchison board members including managing director Mr Greg Martin and replaced them with his own representatives.
Murchison Metals in a statement said that it expects to offer to buy back its remaining issued shares at 4% to 4.2% per share.
The shares had dropped by 0.1 of a cent to 4% on Friday, having fallen 87% from the 30% level they reached in 2007 before the global financial crisis hit.
Murchison got into trouble in mid 2011 when it could not get funding it had hoped to attract from Chinese interests for the USD 6 billion Pilbara Oakajee Port and Rail project it was a major partner in. It was forced to sell its interest in that and its producing Jack Hills iron ore mine to JV partner Japan's Mitsubishi for USD 325 million.
While the company was expected to de list with liquidators appointed soon, the move by Sir Ron to nearly double his stake to 17% in November has raised speculation he may have his own plans for the shell company.
Murchison added that the board believed the proposed buy back offered shareholders a choice between exiting their investments in the company and retaining their shares.
