Sundance says Hanlong can't meet key deal deadline

SYDNEY (AP) -- Australia-based iron ore miner Sundance Resources Ltd. said its Chinese suitor Hanlong Mining Investment Ltd. can't meet a crucial deadline Tuesday for a 1.3 billion Australian dollars ($1.36 billion) takeover.

Investors have already factored in the likelihood of the deal falling apart. Shares in Sundance, which has operations in Africa, have slumped because of Hanlong's inability to secure finance and reports last week that Liu Han, chairman of the Hanlong Group, had been detained by Chinese police.

A Chinese police statement on Friday said that Liu was suspected of hiding a brother who is a fugitive in a murder case. Hanlong has been unable to contact Liu after a Chinese financial newspaper reported he was detained in mid-March.

Hanlong has told Sundance that details of financing required to be provided as part of the takeover will not be delivered as planned by Tuesday.

Either company can terminate the takeover if no new agreement is reached within five business days.