Padbury frees FE Limited offer from electing certain directors....

Padbury frees FE Limited offer from electing certain directors.

By: Esmarie Swanepoel
22nd September 2010

PERTH (miningweekly.com) - ASX-listed iron-ore, gold and uranium explorer Padbury Mining on Wednesday again urged shareholders to disregard a takeover offer by FE Limited, after that company dropped one of its takeover requirements.

FE Limited has dispatched a bidders statement to all Padbury shareholders freeing the offer from electing certain FE Limited directors to the Padbury board.

Earlier this month, Padbury Mining voted against the appointment of Tony Sage and two other FE Limited directors to the company's board of directors.

The meeting was called after FE Limited proposed to make a cash-and-share offer for Padbury, provided that Sage, Mark Gwynne and Paul Kelly joined the Padbury board, and Luke Innes, Gary Stokes and Colin Stirling stepped down.

FEL would offer one of its own shares, along with 1c, for every 13 Padbury shares held.(*)

Padbury said on Wednesday that the takeover offer was still subject to a number of conditions, including that FE Limited acquired 100% of one class of Padbury unlisted options currently on issue at their original subscription price.

The takeover target noted that it had received signed statements from a majority of the holders of this class of options, confirming that they would not accept any FE Limited offer for their options.

"As a result, the option acquisition condition of FE Limited's bid cannot be satisfied and a major level of uncertainty over FE Limited's offer remains," Padbury noted.

"FE Limited is now again required to determine whether or not to waive the condition and proceed with its low-ball bid or rely on the failure of the option acquisition condition in order not to proceed with its offer."

http://www.miningweekly.com/article/padbury-frees-fe-limited-offer-from-electing-certain-directors-2010-09-22

(*) PDY @ 1.3c , FEL @ 12c