GRAM holds 24.1% of PanAust already and is offering $A1.71 per share, which PanAust has rejected, calling it opportunistic.
 
PanAust shares had traded above that level since the bid was made, yesterday closing at $1.755.
 
Independent expert Ernst & Young reviewed the offer and concluded it was not fair or reasonable.
 
EY assessed the fair value of PanAust shares to be $1.84-2.04 per share, with a mid-point of $1.94. PanAust has also pointed out that analysts’ consensus is $2.08.
 
Yesterday, in a letter to shareholders, the company said share prices of other copper companies, in Australia and overseas, had jumped around 20% since GRAM made its offer.
 
“However, over the same period the PanAust share price has increased by only 2.3%, as it has been linked closely to the GRAM offer,” the company said.
 
“As a PanAust shareholder, you should also be benefitting from this positive change in sentiment towards copper mining companies.”
 
Supply interruptions and speculation of Chinese stimulus has helped copper enter a bull market.
 
Copper added another 1.1% overnight to $US6481.75/t, its highest point so far in 2015.
 
The red metal is now up more than 19% on the six-year low of $5433/t set in January.
 
Macquarie this week lifted its target price for PanAust from $A1.71 to $1.80 in anticipation of a higher offer from GRAM.
 
“GRAM currently owns 24% of PanAust and we believe that a small lift in the offer price to $1.80 could be sufficient to get the deal done and we lift our price target to match our view,” Macquarie said.
 
PanAust shares opened at $1.75.