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Magnum turns to Takeovers Panel in fight for Ambassador

Magnum turns to Takeovers Panel in fight for Ambassador

Photo by Bloomberg

20th June 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The Australian Takeovers Panel has stepped into the battle for Ambassador Oil & Gas, after New York-listed Magnum Hunter Resources turned to the panel in an effort to stop shareholders accepting an offer from Drillsearch Energy.

At the start of this week, Drillsearch hiked its offer from one of its own shares for 5.4 Ambassador shares, adding 5c cash for every 5.4 Ambassador shares.

Magnum subsequently increased its own offer for Ambassador from one of its own shares for every 27.8 Ambassador shares held, to one of its own shares for every 23.6 Ambassador shares held.

Magnum was also giving Ambassador shareholders the option to exchange their shares for cash, rather than Magnum stock.

The New York-listed company turned to the Australian Takeovers Panel after Ambassador’s nonexecutive chairperson David Shaw, and the company’s MD Guistino Guglielmo, who collectively hold 26.43% of the company, accepted the Drillsearch offer.

The panel has now made interim orders halting Drillsearch from taking any further steps to process any acceptances received under its bid for Ambassador, or to appoint a director to the Ambassador board.

The interim order would be effective until a further panel order, or until a determination of the proceeding has been made.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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