The Takeovers Panel advises that it has received an application by Federation Group Ltd for a review of a decision by ASIC to decline to modify the Corporations Law to allow Federation to exercise options in Pinnacle. Federation would currently breach the 20% threshold if it exercised the options. The Panel received the application on Thursday 25 January.
Federation made takeover offers dated 2 October 2000, for all of the shares in Pinnacle, and for the two sets of listed options. Those bids have now closed. Under its bids, Federation acquired 10.6% of the voting shares in Pinnacle and 50% and 5% of the two sets of options. One set of the options expires on 1 February 2001, the second on 31 January 2002. Federation would have an interest in between 18.92% and 24.45% of the voting shares of Pinnacle if it exercised all of the options.
Reliable Power Inc announced on 22 January 2001 its intention to make a takeover bid for Pinnacle.
The President of the Panel, Mr Simon McKeon, is currently assembling a sitting Panel for this application.
Corporations and Securities Panel
Level 47 Nauru House, 80 Collins Street
Melbourne VIC 3000
Ph: +61 3 9655 3501