Macquarie resubmits OZ Minerals recapitalisation proposal

Macquarie has resubmitted its ''Project Scotland'' recapitalisation proposal, which it said offered a 79-per cent value premium over the Minmentals proposal, on considerations of a recapitalised OZ Minerals being worth an indicative $5.24 billion.

The revised proposal that is believed to also involve Morgan Stanley is said to be a somewhat modified proposal the OZ board received and rejected on Friday. The board found the proposal as being better than the RFC-Royal Bank of Canada proposal but not quite as good as that of Chinese group Minmetals.

Though the board had already recommended the Minmetals proposal for acceptance, there was some dispute as to which plans had better shareholder support.

According to industry sources about half of OZ's registry had submitted proxy votes by yesterday's deadline and the Minmetals offer had received a favourable response from more than 90 per cent voters. The deal involves China buying all of the company's assets except for the flagship Prominent Hill mine.

OZ had warned investors of the company forced into administration by its syndicate of banks in the event the Minmetals deal fell through.

Meanwhile tomorrow's annual general meeting of the company will be watched closely by China as shareholders may still block the deal given that they have the power to do so. Analysts believe a new proposal cannot be ruled out.