The market responded positively with the Sundance Resources (SDL: ASX) announcement that it has accepted the lower and revised takeover bid of China's Hanlong Resources.

SDL stocks rose 7.46 per cent to 0.360 per share (as of 4:20 AEST) as the revised takeover bid is estimated at US$1.45 billion.

The potential takeover of China's Hanlong placed the 45 cents per share offer, which is a 12-cents decline from the 57 cents offer back in 2011 as a result of low demand and the fickle financial markets.

Early this month, China's National Development and Reform Commission (NDRC) granted provisional approval on the proposed takeover bid by Hanlong. Hanlong, a state-owned firm, wants Sundance for its direct involvement in two Africa mining projects that are top iron ore reserves.

Nonetheless, this still needs to be re-affirmed by China's state-owned firm. Although this move on the part of Sundance significantly breaks the indecisiveness of the company, the timing may not augur well for a better deal and more money for investors.

Market analyst Stan Shamu notes that the Sundance (SDL) stocks are still trading at a significant discount compared to Hanlong's offered price, which arises from the frustration cast by investors.

"Plenty of investors would have accumulated in the mid-40s cent range while holding out for the original 57 cents. There is now no point for these investors holding out for a breakeven play when there is still plenty of time and risk before the deal is finalised and they receive their money. The takeover is expected to be completed by mid-December," says Mr. Shamu in response to an email from ibtimes.com.au.

He also points out the current scenario of declining ore prices amidst the low manufacturing output of China.

The country has been struggling with its exports as top markets in Europe had been economically languishing for more than six months.

IG Markets said in an afternoon market report that "Chinese markets are struggling after a report showed profit at China's industrial companies fell for a fourth month. However, it seems the downside is being limited by Premier Wen Jiabao's comments on exports. He said China needs targeted measures to promote steady export growth, which will help the nation meet its annual economic goals, including speedier payment of export tax rebates and an expansion in financial products used to hedge foreign exchange risks."

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