Zinifex on track for Allegiance takeover

Mining company Zinifex appears set to take over Allegiance Mining after a bitter nine-week struggle.

The Allegiance board has accepted an improved offer from Zinifex.
Nine weeks ago, Zinifex launched a hostile bid for Allegiance, and therefore the Avebury nickel mine at Zeehan on Tasmania's west coast.

The Allegiance board labelled the offer of $1 per share "unacceptable" and "opportunistic".
Last week it claimed fewer than 10 per cent of shareholders were selling.
But this morning, the companies have issued a joint statement saying Zinifex has increased its bid to $1.10 per share.

Allegiance has told shareholders to accept the offer, saying it reflects the value of Avebury.
Zinifex says it is delighted and will let two Allegiance directors stay on the board.
The others will resign as soon as Zinifex owns more than 50 per cent.
The offer is due to close in 11 days.