farcial.. no third party

Step right up and welcome to the clown show. This is getting to be a joke (on both sides)..


Allegiance rules out 3rd party bid, calls on Takeovers Panel
ALLEGIANCE MINING
By Rebecca Le May
PERTH, Feb 12 AAP - Allegiance Mining NL says a third party that was conducting due diligence on the nickel miner will not proceed with an rival takeover bid to that of Zinifex Ltd's $744.93 million offer.
"Last night, Allegiance was advised that the relevant third party had ceased its due diligence and would not be submitting a proposal as it was unable to comply with the timetable and deadline that Allegiance had required," Allegiance said in a statement today.
"As a result, no third party is currently conducting due diligence or in negotiation with Allegiance."
Allegiance also says it has called on the Takeovers Panel to make a declaration of unacceptable circumstances and final orders regarding Zinifex's 30-minute delay in advising the market that its offer had not closed on Friday (February 8).
The target is concerned that some shareholders representing about eight per cent of its issued capital had accepted the offer at 1900 AEDT on February 8, believing it had not been extended.
Allegiance has rejected Zinifex's bid, saying it undervalues the company, specifically the exploration upside at its Avebury mine in Tasmania, which is expected to go into production this quarter.
On Friday at about 1930 AEDT, Zinifex issued a statement saying the offer had been extended by a fortnight - half an hour after it was scheduled to close.
The Zinifex offer will now close at 1900 AEDT on February 22.
Earlier on Friday Allegiance had asked Zinifex to make a statement about its intentions.
"Allegiance is concerned that a quote in the press attributed to a Zinifex executive, and other conduct of Zinifex, misled at least three shareholders," it said.
"As a result, those shareholders accepted the offer at 7pm (1900 AEDT) believing that it had not been, and would not be, extended.
"The shareholders accepted for a combined holding of approximately 40 million Allegiance ordinary shares.
"Allegiance has sought orders that the relevant shareholders be permitted to withdraw their acceptances and that Zinifex not process the relevant acceptances."
Eagle Research Advisory analyst Keith Goode said he was not surprised Zinifex had not upped its bid.
"They'll just keep extending," Mr Goode said.
"If they sit there long enough, they`ll probably get it."
He said the bid was opportunistic, given imminent production at Avebury.
"Hedge funds have piled into Allegiance on the basis of taking a punt and that's why its share price is trading above the Zinifex bid price (of $1 per share).
"When Zinifex first made the move, I thought there was a fair chance Allegiance could get more, but relative to what (fellow nickel miners) Sally Malay Mining and Mincor (share prices) have done since then, you would have to say on that comparative basis that the Zinifex offer is actually fairly good."
Zinifex has criticised Allegiance's refusal to commission an independent expert's report.
On Sunday Zinifex said it had increased its stake in the target to more than five per cent after its second largest shareholder, Lion Selection Group Ltd, accepted the offer.
Zinifex yesterday called on Allegiance to fully disclose its alleged leveraged share trading in small capitalisation stocks, resulting in a $7.9 million loss.
Allegiance was being sought for comment.
Shares in Allegiance were one cent lower at $1.045 at 1404 AEDT while Zinifex's shares were 27 cents higher at $9.28.
AAP rlm/jmc