Federal Court says Panel Decision Unacceptable

The Federal Court’s decision to overturn the findings of the Takeovers Panel (Panel) in the Austral Coal swaps matter is the first serious set back for the Panel since its celebrated reinvigoration in 2000. The decision will have a significant effect on the way the Panel conducts proceedings in the future. This article discusses the case and its implications.

Background

The case arose after the Panel made a declaration that unacceptable circumstances existed because Glencore failed to disclose the existence of cash settled equity swaps in relation to shares in Austral Coal Limited at a time when it held physical shares which would have increased its combined holding (that is, equating the swap position with an actual holding) to approximately 12 per cent of the company. The decisions of the Panel have been discussed in previous articles.