Felix Won't Do A Talbot, Promises Chief
Sydney Morning Herald
Friday July 4, 2008
FELIX Resources - pegged as a prime takeover target in the coal sector - has no plans to repeat the controversial register divide that took place this week at its rival Macarthur Coal.
The managing director of Felix, Brian Flannery, yesterday told the Herald he did not want to judge the decision of Macarthur Coal's founder, Ken Talbot, to divide his holding between steel giants ArcelorMittal and Posco. But he said investors should not expect a similar situation to occur at Felix.Like Macarthur before recent block share purchases by ArcelorMittal and Posco, Felix's register is dominated by its management team and a coal trader. Between them, Mr Flannery and Felix's chairman, Travers Duncan, own 30 per cent of Felix. Mr Talbot, the former managing director of Macarthur, has faced criticism for selling his stake to two parties rather than accepting a single takeover offer that would have benefited all shareholders. Since his sale of 10 per cent of Macarthur to Posco at $20 a share this week, the takeover premium has evaporated and Macarthur shares have plunged to $15.15.Mr Flannery was adamant that his directors would not allow a repeat of the Macarthur situation. "We have a philosophy of looking after all of our shareholders," he said.Speaking at the Sydney Mining Club yesterday, Mr Flannery revealed his company would hit the "top end" of its recent upgraded earnings guidance of $220 million to $240 million for the year ended June 30.Felix has often been cited as a prime takeover target for Xstrata, which owns the Ulan mine adjoining Felix's Moolarben project and last year launched a court battle which had the effect of delaying Felix's project.Mr Flannery said Moolarben would begin production from an open cut in early 2010 and an underground mine in 2012, in line with expected capacity increases at the busy port of Newcastle.
© 2008 Sydney Morning Herald