The Russian steel and mining company Severstal has failed to agree terms on a bid with Australia-based uranium producer Berkeley Resources, as an exclusivity period granted to Severstal has expired, Berkeley Resources has announced.
Berkeley Resources also said it received an alternative transaction proposal from Severstal and that it will continue discussions with Severstal in relation to this proposal.
Severstal's right to subscribe for shares in Berkeley Resources remains in force until January 14, 2011, unless it announces an intention to proceed with a takeover bid on or before that date.
In October, Severstal approached Berkeley Resources about a possible takeover of its uranium asset in Spain worth about AU$304 million. A successful takeover would give Severstal its first uranium asset in Spain, allowing it to diversify its mining business and benefit from an expected rise in European demand for nuclear power.