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Australia's Bradken says mulling $731 mln bid from Bain, PEP

SYDNEY, Dec 5 (Reuters) - Australian mining products maker Bradken Ltd said on Friday it is considering an A$872 million ($730.56 million) takeover proposal from buyout firms Pacific Equity Partners and Bain Capital.

In a statement to the Australian Securities Exchange, Bradken said the private equity giants made the offer after making an initial A$1 billion approach in August, which never led to a firm offer.

The new A$5.10 per share offer comes as mining services companies rush to pare their exposure to the sector, which is slashing spending to offset a sharp decline in commodities prices. Bradken's shares last closed at A$3.32, a one-third discount to their Aug. 14 close.

PEP and Bain made the revised offer "at a low point in the mining cycle during a time of significant share price volatility in the broader mining services sector," Bradken said in the statement.

Its board is reviewing the lower proposal with its advisors Merrill Lynch & Co Inc and Rothschild, Bradken added.

(1 US dollar = 1.1936 Australian dollar) (Reporting by Byron Kaye; Editing by Chris Reese and Alan Crosby)