Panel Publishes Reasons for Vesting Taipan Shares in ASIC

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The Takeovers Panel advises that it has published its reasons in relation to an application from Troy Resources for a declaration of unacceptable circumstances and orders in relation to St Barbara Mines' takeover bid for Taipan Resources announced on 21 December 2000. The Panel received the application on 13 February 2001.

Troy raised a number of allegations in its application. However, the Panel decided to consider only the allegation that St Barbara breached section 606 by increasing Strata Mining Corporation's voting power in Taipan to more than 20% on 12 October 2000 when St Barbara acquired 4 million shares in Taipan.

The Panel made a declaration of unacceptable circumstances on 9 March in relation to the contravention of section 606 arising out of the acquisition of the 4 million Taipan shares by St Barbara. On 14 March, the Panel ordered that 2.7 million Taipan shares held by St Barbara vest in ASIC for sale with the proceeds (less ASIC's costs) to be provided to St Barbara.

The Panel invited ASIC to make further enquiries into the other allegations raised by Troy and requested ASIC to advise it of any further evidence that it uncovered relevant to those allegations. ASIC subsequently advised the Panel that its enquiries did not uncover sufficient evidence to warrant further investigation. On this basis, the Panel decided not to make any further enquiries into these allegations.

The Panel for this matter was Prof. Ian Ramsay, Denis Byrne and Trevor Rowe.

The reasons are available at the Panel's website.

Nigel Morris
Corporations and Securities Panel
Level 47 Nauru House, 80 Collins Street, Melbourne VIC 3000
Ph: +61 3 9655 3501