drillsearch privacy, page-4

Beach, Drillsearch in verbal stoush
June 1, 2009 - 8:14PM
A war of words has broken out between suitor Beach Petroleum and takeover target Drillsearch Energy Ltd, with each claiming concerns about messages given to shareholders.

On May 5, Beach Petroleum made a $50 million bid to takeover Drillsearch.

Drillsearch on Monday said Beach Petroleum had failed to provide all information about Drillsearch's Cooper Basin interests in a recent $50 million takeover bid.

Beach is associated with Drillsearch in three joint ventures with Drillsearch in South Australia's Cooper/Eromanga Basin.

"In Drillsearch's opinion, Beach failed to provide detailed information it possessed regarding the potential resources and value of Drillsearch's Cooper Basin interests," a Drillsearch statement said.

On Friday, Beach Petroleum revised its bidder's statement to include new information.

"This information was available in April 2009 but was not released when Beach announced its offer," Drillsearch said.

"Beach has been aware of the information since April but chose not to inform shareholders when it announced its original offer," a Drillsearch spokesman said.

"In these circumstances Drillsearch believes the timing of Beach's offer is highly opportunistic," he said.

Late on Monday Beach, Petroleum hit back.

Beach Petroleum said it had made an application to the Takeovers Panel in respect of the proposed takeover, citing a letter apparently from Drillsearch director Jim McKerlie and a message by former managing director Philip Kelso to shareholders.

"Those concerns are that statements made by Mr McKerlie and Mr Kelso may confuse or mislead Drillsearch shareholders about Beach's proposed offer," Beach Petroleum said in a statement.

"Beach, as a shareholder of Drillsearch, is concerned that all Drillsearch shareholders and the market be fully informed about the issues concerning the announcement by Drillsearch on 26 May 2009 of the adjournment until 31 July of its general meeting to be held on 10 June 2009 to remove five directors.

"Beach has sought to be joined to proceedings brought by Mr McKerlie in the NSW Supreme Court against Drillsearch and others alleging that the adjournment of the meeting was not validly made and the meeting must go ahead on 10 June," Beach said.

"Beach is concerned that the court be fully aware of the fact that shareholders are not properly informed as to its bid and that the board spill appears designed to frustrate the bid," Beach managing director Reg Nelson said in a statement.

© 2009 AAP