Australia's Northern Iron shares spike on Indian takeover bid

SYDNEY, July 24 (Reuters) - Shares in Australia's Northern Iron jumped as much as 38 percent on Monday after Indian conglomerate Aditya Birla Group sweetened its takeover offer to A$518 million ($532 million).

Northern Iron said the board would consider the latest A$1.40 per share offer and make a decision within a week. In morning trade the company's shares were at A$1.08, up 35 percent from their close but still at a discount to the offer price.

Aditya Birla Group had in May proposed to offer between A$1.28 and A$1.35 a share, which Northern Iron said failed to reflect the improvements in quality and production rates that it expects to achieve at its iron-ore mines in Norway. ($1 = 0.9739 Australian dollars) (Reporting By Jane Wardell; Editing by John Mair)

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