Australian mining company Atlas Iron has recommended an A$390 million ($287 million) bid from peer Hancock Prospecting after rival suitor Mineral Resources pulled out of the race for the small iron ore miner.
Atlas said in a statement that a majority of the Atlas Board withdrew support for the Mineral Resources scheme and backed Hancock’s offer, in the absence of a superior proposal.
Mining infrastructure provider Mineral Resources said it would not be sweetening its A$280 million offer to match Hancock’s bid.
Its withdrawal puts the focus on world No. 4 iron ore miner Fortescue which has built up a 19.9 percent stake in Atlas.