A DECISION by the Takeovers Panel has cleared the way for CaptiveVision Capital to relaunch its takeover bid for Skywest.
On July 30 the panel put the chocks on the CVC bid after revelations that former Skywest chief financial officer Craig Lovelady had been leaking sensitive Skywest data to CVC.
Mr Lovelady had been a former director of CVC.
CVC had asked the Takeovers Panel to review its earlier ruling concerning the takeover.
On September 1 the panel announced that it had advised both CVC and Skywest that it had made orders requiring further disclosure of CVC’s off-market takeover bid for all of the Skywest shares it did not already own.
This means CVC now has to lodge a supplementary bidder’s statement that includes information on the relationship between Mr Lovelady and CVC.
The statement also has to lay out what material information that was not available to shareholders Mr Lovelady passed to CVC and over what timeframe.
The panel also ordered Skywest to tell shareholders the true state of its plans to move to an Australian Stock Exchange float and its financial performance expectations for the 2004-05 financial year.
CVC managing director Jeff Chatfield said the company was pleased with the panel’s decision.
"CVC believes it is critical for shareholders to consider cash offers on their merits," he said.
"The CVC takeover of Skywest was initially a friendly takeover invited by the Skywest managing director [Scott Henderson].
"Indeed, the Skywest managing director actively encouraged the bid and met with several prospective partners of CVC."
Mr Chatfield said CVC’s bid pricing for Skywest had been declared "reasonable" by PricewaterhouseCoopers, the independent expert appointed to consider the pricing.
Mr Henderson has previously denied inviting the CVC takeover bid for Skywest.
The panel also made a finding in relation to CVC’s claims about Mr Henderson encouraging the bid in its July 30 decision.
It found that Skywest had invited CVC to help it finance its acquisitions of new aircraft but that CVC’s claims that Mr Henderson had invited it to conduct a takeover bid was "inconsistent with Mr Lovelady’s email of December 1".
The Skywest board has hit back at CVC pointing out the Takeovers Panel had upheld its finding of "unacceptable circumstances" in relation to the bid.
It also said CVC’s 20 cents a share offer for Skywest was too low.
However, some former Skywest shareholders WA Business News has spoken to have said that the CVC bid put a higher value than they had expected on their shares.
Skywest managing director Pat Ryan said the company was moving towards an ASX listing but those moves had been delayed by "the conduct of CVC and Mr Lovelady surrounding the takeover bid".
The airline expects to lodge its supplementary target’s statement with the panel by September 10.
