TP02/043
The Panel advises that it has accepted an undertaking offered by Placer Dome Asia Pacific Limited (Placer Dome) in relation to the broker inducement fee which Placer Dome announced on 29 July 2002 (Australian time) under its takeover offers for AurionGold Limited.
The Panel had concerns that the size of the fee offered by Placer Dome had the possibility of inducing brokers to place undue, and possibly coercive, pressure on their clients to accept the Placer Dome offer.
Placer Dome has undertaken to vary the broker inducement fee to 0.75% of the value of the consideration payable to an accepting shareholder, up to a maximum of $750. Acceptances placed up to 1.30 p.m. today will be paid the originally announced fee. The Panel understands that this applies to something less than 5% of the total shares in AurionGold.
As a result of the undertaking the Panel decided that its concerns relating to the broker inducement fee had been addressed.
On this basis, the Panel decided not to commence proceedings in relation to the application by AurionGold dated Monday 5 August 2002.
The sitting Panel for the application is Marie McDonald (sitting President), Simon Mordant (sitting Deputy President) and Elizabeth Alexander AM.
Nigel Morris
Director, Takeovers Panel
Level 47 Nauru House
80 Collins Street
Melbourne VIC 3000
Ph: +61 3 9655 3501
nigel.morris@takeovers.gov.au
