Australia’s takeovers panel dismisses Cardinal dispute

The Australian Government Takeovers Panel has turned down requests to change Nordgold and Shandong Gold’s offer conditions for the Cardinal Resources takeover bid.

Nordgold filed an application to the takeovers panel on October 23, stating that Cardinal had been misleading about its shareholder intentions to accept or reject a takeover bid.

Cardinal previously encouraged its shareholders to accept Shandong’s best and final offer of $1 per Cardinal share, lodged on October 19.

Nordgold then increased its $0.90 per share offer to $1 per share on October 21.

On October 26, Nordgold declared the $1 per share offer as its best and final price.

In response to the Nordgold application, Cardinal and its shareholder Samson Rock requested that Nordgold and Shandong be allowed to raise their bids above $1.

This was on the condition that the successful bidder would compensate any person that sold Cardinal shares after the bidder’s initial best and final statements last month.

The takeovers panel, however, stated that there was no reasonable prospect that it would find Shandong and Nordgold’s bids for Cardinal unacceptable.

This was due to Shandong’s offer on October 19 not being ambiguous, Nordgold’s matching of Shandong’s offer not being a misuse of the “truth in takeovers” policy, while there was also no evidence to suggest the bidding had been stalled.

Reasons for the decision will be posted on the takeovers panel website in due course.

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