JOHANNESBURG (miningweekly.com) – Coal developer Firestone Energy has made an application to the Australian Takeovers Panel, seeking a declaration of unacceptable circumstances in respect of the hostile takeover offer made by fellow ASX-listed Range River Gold.
The ASX- and JSE-listed company was currently the takeover target of Range River, which was offering Firestone shareholders 1.25 of its own shares for every two Firestone shares held.
This was up from its initial offer of one of its own shares for every two Firestone shares held when it first launched the hostile takeover bid at the end of last year.
Mining Weekly Online reported earlier this month that Firestone believed the offer was “inadequate and opportunistic” and failed to provide its shareholders with appropriate value for their shares despite Range River improving its offer.
Firestone had welcomed the rejection of the offer by one of its major shareholders, last week, and reiterated its recommendation that other shareholders follow suit.
BBY Nominees, which holds a 16.9% stake in Firestone, declined the offer, restating its confidence in Firestone.