mining chief in bid to stop sale...

http://business.theage.com.au/mining-chief-in-bid-to-stop-sale/20080410-25cd.html

Mining chief in bid to stop sale
* Vanda Carson and Colin Kruger
* April 11, 2008

LAWYERS for Conquest Mining managing director John Terpu have told the NSW Supreme Court that a $50 million project in Queensland is in jeopardy if ANZ sells his shares following the Opes Prime collapse.

ANZ was handed nearly $1 billion worth of shares in return for loans it provided to Opes clients such as Mr Terpu.

The bank is now selling the portfolio to cover $650 million of loans outstanding following the Opes Prime collapse last month.

Mr Terpu, who put up his own Conquest shares and those of his trust as collateral for a margin loan, said a company called Gold Fields Australia had contacted him to say his stock was for sale and it had offered to buy it.

Mr Terpu's lawyers told the court that if the stock was sold to Gold Fields, Gold Fields would control the company and could put on hold a $50 million joint venture that was obliged to undertake drilling at the Mount Carlton project in Queensland.

"They may prefer to do that rather than spend $50 million for the benefit of minority shareholders," Francis Douglas, QC, for Mr Terpu, said.

Mr Douglas said Gold Fields' stake would reach 18.9% if it bought Mr Terpu's holding, which had been offered for sale at 32¢ a share. This is nearly 15% below the 38¢ at which the shares last traded.

On a separate issue, Mr Douglas told the court that "all the major banks knew (before the collapse) that Opes' client authorisation forms were not just authorising a 'mortgage' over their shares but an outright transfer of their title to ANZ".

Mr Terpu has accused Opes of misleading and deceptive and unconscionable conduct, and wants ANZ to return his shares or repay what they were worth.

His case may yet be joined with those in Melbourne as the courts decide whether ANZ and the other Opes financiers had title to the shares.

Meanwhile, receivers and administrators continued their attempt to untangle the transactions, and alleged account manipulation, that led to the collapse.

A spokeswoman for the Opes receivers from Deloitte said they were still reconciling client accounts and should be in a position to issue account statements to clients by next week.

The three Opes Prime founders are prevented from leaving the country while investigations continue. The Australian Securities and Investments Commission will today attempt to extend the restraining order on Opes founder Julian Smith.

Last week, Mr Smith withdrew from an offer to surrender his passport and on Monday went before the Federal Court, which restrained him from leaving the country until 4pm today.