Sundance halted as takeover bid stalls Leonie Lamont October 11, 2011
.China's Hanlong Mining has been told the Foreign Investment Review Board will not progress its takeover bid for Sundance Resources until it has a fuller picture of the findings of the investigation into alleged insider trading of some Hanlong executives.
Sundance shares were put into a trading halt this morning, pending an announcement on the matter.
BusinessDay has confirmed that the $1.65 billion takeover, recommended by Sundance directors last week after Hanlong improved its offer by 7¢ to 57¢ a share, now depends on the timetable of the Australian Securities and Investments Commission inquiry.
Advertisement: Story continues below The FIRB is required to apply a national interest test to the takeover, and sources have told BusinessDay no decision will be made until ASIC outlines the extent of its findings.
The insider trading investigation came to light a month ago, when ASIC sought travel restriction and asset preservation orders against three Hanlong staff, including Hanlong's managing director, Steven Hui Xiao, and vice president, Calvin Zhu. Mr Xiao, Mr Zhu and another employee, Fan Zhang, have been stood down. No one has yet been charged in the case.
ASIC is investigating trades in Sundance Resources and Bannerman Resources, both takeover targets of Hanlong.
