Despite the persistent take-over talk, both companies in January denied there had been any discussions over a potential corporate hook-up. GWR managing director Gary Hutchinson, subsequently confirmed in April that broker Bell Potter had pitched a potential take-over of Fairstar in December that GWR did not believe was worth considering and no action was taken.
Adding to the intrigue, Mr Doutch in June also registered a new company, Classic Iron Pty Ltd, which operates out of Fairstar's former Osborne Park address.
On Tuesday, the talk of tie-up finally became true when Fairstar announced a five-for-one all scrip take-over for GWR.
GWR immediately advised investors to take no action and FAS shares 6c to 55c, slashing the national value of its offer to $2.75 per GWR share. GWR closed 7c firmer at $2.25 yesterday.
Sources close to the dissident group last night claimed that FAS had been sparked into action after discovering the group's plans to push a board shake-up and distance GWR from Fairstar.
GWR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
