Cameco extends Hathor offer, does not change bid

Mon Oct 31, 2011 10:00am EDT
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(Reuters) - Cameco Corp (CCO.TO: Quote) said on Monday that it has extended its takeover offer for Hathor Exploration HAT.TO to November 14, but Canada's largest uranium miner did not increase its all-cash bid for the small-cap uranium explorer.

Cameco's hostile takeover offer values Hathor at C$520 million ($520 million) and had been set to expire on October 31.

Earlier this month, global mining giant Rio Tinto (RIO.AX: Quote) (RIO.L: Quote) counterbid C$578 million, or C$4.15 a share, for Hathor, topping Cameco's C$3.75 a share offer. Hathor's board has backed Rio's offer.

At stake is Hathor's large exploration-stage Roughrider project in the uranium-rich Athabasca region of Saskatchewan in Western Canada.

Shares of Hathor have risen about 70 percent since the day before Cameco's offer was first announced. The stock opened down 4 Canadian cents at C$4.55 on Monday on the Toronto Stock Exchange.

($1=$1.00 Canadian)

(Reporting by Julie Gordon; editing by Peter Galloway)