Re: PDN - Paladin Resources
http://www.smh.com.au/news/Business...ladin-shares-up/2007/05/21/1179601321579.html
Relief sends Summit, Paladin shares up
May 21, 2007 - 6:39PM
Shares in Paladin Resources and the uranium company's takeover target Summit Resources rose on Monday on relief the pair won't face action from the takeovers watchdog.
The Takeovers Panel said late on Friday night it was disappointed with the conduct of Summit and joint venture partner and predator Paladin, but no orders would be taken against the duo.
The panel was responding to proceedings started by French nuclear giant Areva NC, which claimed the companies failed to give Summit shareholders an adequate chance to consider a $292.6 million strategic alliance it proposed to stymie Paladin's takeover bid.
The Areva alliance would have been an alternative to Summit's improved and recommended $1.18 billion takeover offer from Paladin.
Shareholders showed their relief with the panel's rap on the knuckles, Summit's shares gaining 21 cents or 4.2 per cent at $5.25 and Paladin adding 31 cents or 3.7 per cent to $8.76.
But the Takeovers Panel did not hold back in criticising the conduct of the pair.
"The Panel is disappointed with the quality and timeliness of the disclosure by Paladin and Summit and does not consider it to be an example of good market practice," the panel said in a statement.
"The panel does not consider that Summit shareholders have been well served in terms of the information both Paladin and Summit have provided about their intentions in relation to the Areva transaction."
But the panel defended its decision not to take any formal action.
"The panel's decision not to make orders should be viewed in light of the particular circumstances and should not be taken as the panel considering that Paladin and Summit have acted satisfactorily," it said.
"If the plan had considered that there were orders that would have been effective in remedying the effects of the unacceptable circumstances and were in the interests of current and former Summit shareholders, the panel would not have hesitated to make those orders."
The Paris-based Areva had snapped up a 10.46 per cent stake in Summit in a blow to Paladin, but said it was not interested in launching a full takeover offer for the target.
Paladin has secured over two thirds of the shares in its joint venture partner, ownership of which would give it total control over the Valhalla/Skal deposit in north-west Queensland.
Paladin also operates the Langer Heinrich mine in Namibia and has plans to bring its second mine in Malawi on line by 2009.
Paladin has extended its takeover offer for Summit several times, the most recent being on May 18 making a new closing date of May 25, but it reserves the right to further extend.