The Corporations and Securities Panel has required St Barbara Mines Ltd (St Barbara ) to vary its offers under its takeover bid for Taipan Resources NL (Taipan ) to improve the consideration offered for the Taipan partly paid shares. The relevant issue was raised in an application by Troy Resources NL (Troy ) on 27 February. Troy is also bidding for Taipan.
Under its original announcement on 21 December 2000, St Barbara proposed to offer 1 option to subscribe for a St Barbara fully paid share for 30 cents at any time prior to 29 February 2004 for every 4 Taipan partly paid shares.
However, under St Barbara's bid made on 21 February 2001, St Barbara offered 1 St Barbara ordinary share plus 2.5 cents cash for every 20 Taipan partly paid shares or, alternatively, 0.7 cents cash for each Taipan partly paid share.
The Panel advised St Barbara that it was satisfied that the offers for partly paid Taipan shares made by St Barbara on 21 February were substantially less favourable than the offers originally proposed by St Barbara in its announcement on 21 December, giving rise to a contravention of subsection 631(1) of the Corporations Law.
St Barbara has announced today that it will offer the St Barbara options as an additional alternative form of consideration for the Taipan partly paid shares. In view of this announcement, the Panel has decided not to make a declaration or orders.
St Barbara's bid is currently scheduled to close on Wednesday, 4 April. St Barbara is having discussions with the Australian Securities & Investments Commission in relation to any extension of its bid.
Director, Corporations and Securities Panel
Level 47 Nauru House, 80 Collins Street, Melbourne VIC 3000
Ph: +61 3 9655 3501