unbiased reporting

Mining companies swap allegations in takeover battle
Thursday February 14, 2008, 3:23 pm
(from ABC)

The mind games are continuing in the takeover battle between west coast miners Zinifex and Allegiance.

Allegiance shareholders have 8 more days to decide whether to sell.

8 weeks ago, Zinifex launched a hostile bid for Allegiance, and therefore the Avebury nickel mine at Zeehan.

The offer was due to close last Friday, but was extended for two weeks.

Since then, Allegiance has reported Zinifex to the Federal Takeover Panel, saying it panicked 3 shareholders into selling 40 million shares.

Yesterday Zinifex questioned whether Allegiance has share trading losses beyond the $7.9 million reported to the stock exchange.

This morning, Allegiance hit back, saying it reported the losses as an absolute maximum, and they could in fact be smaller.

It says all speculative trading stopped once the losses were found.

Allegiance says Zinifex is using diversionary tactics because its offer's attracted little interest after 7 weeks.