Indophil Complains Over Lion Claims
The Age
Tuesday June 10, 2008
INDOPHIL Resources has added another layer to the complex battle with its largest shareholder, Lion Selection, by complaining to the Takeovers Panel.
A statement from the panel said the Melbourne-based explorer claimed some statements by Lion in response to Indophil's $340 million share swap offer were "false and misleading, contain omissions and constitute unacceptable circumstances".Indophil offered 2.5 of its shares for each one of Lion's in March, saying it wanted to build a diversified resources company. The bid was seen as partly defensive because Lion was considered likely to sell its 25.4% holding in Indophil to fund the purchase of other mining assets.Indophil's main asset is its 34.2% stake in the Tampakan copper/gold project in the Philippines. Mining giant Xstrata, which owns 62.5% of Tampakan, launched a $1 a share offer for Indophil last month. Ironically, the Xstrata bid for Indophil has also enhanced the worth of Indophil's offer for Lion, which was worth $1.95 a Lion share before the Xstrata bid and about $2.70 at the close of trade on Friday.Lion signed a pre-bid agreement with Xstrata to sell 17.8% of Indophil to Xstrata, and plans to sell the rest for the best price it can. Lion has called a shareholder meeting for June 23 to gain approval for the Xstrata deal, selling the Indophil stake and making a return of up to $1.50 a share cash. Selling the Indophil shares and making a capital return would seem to breach two of Indophil's takeover offer conditions and give it a reason to withdraw its bid.Takeovers Panel director Allan Bulman said in a statement on Friday a sitting panel had yet to be appointed to determine whether Indophil's claims had merit.But it is believed there may be a decision as early as today on whether to listen to Indophil's arguments. That coincides with an information meeting in Melbourne late this afternoon for Lion shareholders - the first of several meetings around the country.
© 2008 The Age