PERTH (miningweekly.com) – Coal miner Universal Coal has launched proceedings in the High Court of Justice of England and Wales against an unsolicited bid by fellow-listed TerraCom.
The litigation has been started to allow Universal Coal’s bid committee to enforce sanctions set out in the company’s articles of association, suspending all voting rights attributable to the shares in which TerraCom has an interest, or directing TerraCom to divest of its interest in all Universal shares acquired under the unsolicited bid.
TerraCom earlier this month officially launched its 33.5c a share offer for each Universal share held, consisting of 10c in cash and 0.6026 new TerraCom shares.
While Universal has urged shareholders not to take any action with regard to the takeover offer, TerraCom by February 19 had obtained over a 51% voting right to Universal shares.
The suitor has previously said that it would defend itself against any proceedings launched by Universal.