Allegiance takes battle to takeovers panel Colin Jacoby -Mining...

Allegiance takes battle to takeovers panel

Colin Jacoby -Mining News -
Tuesday, 12 February 2008

THE tussle between predator Zinifex and takeover target Allegiance Mining took another twist today after the latter made an application to the Takeovers Panel, seeking a declaration of unacceptable circumstances and final orders in relation to Zinifex's hostile takeover bid.

This morning Allegiance said the application related to Zinifex misleading at least three Allegiance shareholders into believing that the offer had not been extended beyond Friday, when it in fact had been.

Zinifex extended its takeover offer at 6.59pm on Friday, only a minute before the offer was due to close at 7pm.

"Allegiance is concerned that a quote in the press attributed to a Zinifex executive, and other conduct of Zinifex, misled at least three shareholders," the company said.

"As a result those shareholders accepted the offer at 7pm believing that it had not been, and would not be, extended.

"The shareholders accepted for a combined holding of approximately 40 million Allegiance shares."

Allegiance said it had expressed its concern on Friday that the market was not fully informed about Zinifex's intentions and invited Zinifex to inform the market.

However according to Allegiance, Zinifex made no public statement until around 7.30pm on Friday when it advised that its offer had been extended.

Allegiance said it had sought orders that the shareholders concerned, Lion Selection Group, be permitted to withdraw their acceptances.

According to a report in the Sydney Morning Herald on Monday, Zinifex chief executive Andrew Michelmore said Allegiance's second-largest shareholder Lion Selection Group had accepted the offer, with the result that Zinifex currently owns around 40 million shares in Allegiance – a 5% stake.

Zinifex's offer is now scheduled to close at 7pm on February 22.

Allegiance directors also restated their recommendation to shareholders to reject Zinifex's takeover bid.

Meanwhile this morning Allegiance also announced that a third party who had accessed its data room to conduct due diligence had passed the deadline to make a takeover proposal.

The company said that as a result there is no third party currently conducting due diligence or negotiating a takeover offer.

Shares in Zinifex remain unchanged at $9.01 in morning trade, while Allegiance shares remain unchanged at $1.055.