* Says Noront offer inadequate
* Recommends shareholders not to tender shares
* Says Cliffs Natural's offer superior
Canada's Freewest Resources (FWR.V), which is the target of a takeover battle between Cliffs Natural Resources (CLF.N) and Noront Resources (NOT.V), rejected Noront's sweetened bid, calling it inadequate.
Last month, Noront boosted its offer to buy fellow Canadian miner Freewest, attempting to top a rival bid from U.S.-based Cliffs Natural. [ID:nBNG413817]
Freewest termed Cliffs Natural's fixed offer of 90 Canadian cents a share as superior and recommended that shareholders reject Noront's stock-and-warrant bid, which had implied a value of 86 Canadian cents.
Noront's revised offer is primarily dependent on the value of its shares, which are subject to significant fluctuations, and in part on the value of its warrants, which is uncertain, Freewest said, adding that the implied value of 86 Canadian cents is not substantiated.
The board of directors continues to believe that the Noront offer fails to adequately compensate Freewest shareholders for the strategic value of Freewest's assets, Freewest said in a statement.
Cliffs Natural and Noront are battling for Freewest's chromite exploration assets in northern Ontario, which sit next to Noront exploration properties.
Shares of Freewest closed at 90 Canadian cents, while those of Noront closed at C$2.47 Monday on the Toronto Venture Exchange. New York-listed Cliffs Natural closed at $41.88. (Reporting by Ashutosh Joshi in Bangalore; Editing by Deepak Kannan)