TERRITORY RESOURCES SHARES SLUMP 15 PCT IN AUSTRALIA.

PERTH, July 2 Asia Pulse - Shares in Territory Resources Ltd (ASX:TTY) have slumped more than 15 per cent, as the market provided its verdict on the iron ore miner's tilt for manganese producer Consolidated Minerals Ltd (ASX:CSM).

Territory shares, which have been in a trading halt since Wednesday, dipped 23.5 cents or 15.82 per cent to close at .25 ($US1.06).

Territory launched its $768.5 million indicative bid last week, with backing from from commodity traders Noble Group, DCM DECOmetal International Trading and investment bank Lehman Brothers.

The Michael Kiernan-led Territory, which operates the modest Frances Creek iron ore mine in the Northern Territory, is offering $1.50 in cash plus 1.5 Territory shares for every ConsMin share.

But ConsMin refused to put the Territory bid to its shareholders and instead threw its weight behind a previous, million deal from a private consortium led by ex-BHP Billiton boss Brian Gilbertson's Pallinghurst Resources.

Territory said today ConsMin shareholders should be given the opportunity to decide whether its proposal for the company has any merit.

"The shareholders of Consolidated Minerals should be provided with an opportunity to receive a superior alternative proposal to the scheme currently before them," Mr Kiernan said.