A controversial case currently playing out before the UK
Takeover Panel has reignited debate about a key takeovers rule in
Australia - and the need for a regulatory solution in the interests
of market certainty.
In March, uranium miner CGNPC Uranium announced that it may make
a takeover bid for Kalahari Minerals at a given price. It had not,
however, indicated a firm intention to make such an offer.
In response to the Fukushima crisis in Japan, CGNPC proposed to
reduce its proposed offer price for Kalahari- a right it had not
expressly reserved. The UK Takeover Panel refused to allow such a
move, forcing CGNPC to now wait three months before it can announce
a fresh offer at a lower price.
