KEY POINTS:
PERTH - Uranium miner Paladin Resources has extended its A$1.16 billion ($1.31 billion) offer for Summit Resources after securing more than two-thirds of the uranium explorer.
Paladin, which has secured 65 per cent of Summit, has extended the bid by one week to May 18.
However, French nuclear giant Areva has thrown a spanner into the works by acquiring a 10.46 per cent stake in Summit, a move that blocks the compulsory acquisition of the uranium explorer by Paladin.
Areva has appealed to the Takeovers Panel to force Summit to present to shareholders a strategic alliance proposal between the two parties.
Summit and Areva had entered into an agreement to form a strategic alliance before the deal was scrapped by Summit in favour of a takeover by Paladin.
Areva is seeking final orders that require Summit to convene a meeting to consider the alliance and require Paladin to vote in favour of the alliance in accordance with its previously stated intention.
If Paladin's bid is successful, the uranium miner will secure full ownership of the large Valhalla/Skal deposit in northwest Queensland, which is held in a joint venture with Summit.
Paladin operates the Langer Heinrich mine in Namibia, and the company plans to bring its second mine in Malawi on line by 2009.
Paladin fell A9c to A$9.55. Summit slipped A13c to A$5.59.
-AAP
