Nigel Wilson | December 26, 2007 THE stoush between Golden West Resources and its rejected suitor has escalated, with the company seeking a meeting of shareholders to remove three directors.
A board meeting on Christmas Eve decided to seek removal of directors associated with Fairstar Resources and appoint Emah Odeh, who represents the interests of Falak Holdings of Dubai in the company, as a director.
The meeting also decided to continue for the re-election of newly appointed chairman, one-time BHP Ion Ore executive Geoff Wedlock, as a director, even though his appointment has been challenged by Fairstar, which is making a seven-for-one scrip offer for its larger rival.
On the stock exchange there was heavy buying of GWR stock, which closed up 9 per cent at $2.30.
The companies share a common director in Alan Rudd.
In a February announcement, Golden West denied media speculation that it was in discussions with Fairstar about a potential merger.
Then Fairstar made an off- market offer that triggered boardroom tension at Golden West and now holds about 25 per cent of its target.
Golden West is focused on the Wiluna West iron ore project, which also contains uranium and gold mineralisation.
Three Golden West directors - Mr Rudd, Con Markopoulos and Michael Wilson - have contested Mr Wedlock's appointment on the grounds that the company's board is limited to five directors.
It is understood Falak Holdings has requested that Messrs Rudd, Markopoulos and Wilson be removed.
SO MUCH FOR FALAK JOINING YOUR MOB WALLY$$$$$$GST
GWR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
