agm zfx mining news story

Allegiance asks Zinifex to clarify intentions

Colin Jacoby
Friday, 8 February 2008

TAKEOVER target Allegiance Mining has invited would-be suitor Zinifex to clarify whether it wishes to extend its $A775 million takeover bid beyond today's close of offer.



In a statement to the market, Allegiance referred to comments made by a Zinifex investor and community relations manager in the Burnie Advocate this morning that "we have no intention other than to close the offer tomorrow afternoon".

Allegiance said it had been advised that the statement may not legally bind Zinifex to close its offer today.

"Allegiance is concerned that Zinifex will today use the tactic of creating uncertainty about whether or not it will close the offer in an attempt to panic some Allegiance shareholders into accepting its inadequate $1 offer for Allegiance shares," the company said.

Allegiance added that other rumours in the press suggested Zinifex was likely to extend its offer.

"Allegiance invites Zinifex to urgently clarify its intentions and not to use carefully crafted statements in the press in a campaign to create uncertainty amongst Allegiance shareholders," the company said.

"Allegiance shareholders should only believe that Zinifex will allow its offer to close today if and when Zinifex says so in clear and unambiguous terms."

Allegiance continues to recommend that its shareholders reject Zinifex's bid.

Shares in Allegiance have slipped 3.5c to $1.015 while Zinifex has gained 8c to $9.33.