One of Western Australia’s most bitter corporate takeover battles of recent times, CaptiveVision Capital’s bid for Skywest, is officially over – for now.
The Takeovers Panel has made a declaration of unacceptable circumstances and final orders in relation to the battle.
In essence the declaration stops the CVC bid.
However, CVC has made an application to have the declaration of unacceptable circumstances and some of its orders examined by a review panel.
In a media statement CVC director Jeff Chatfield says the company is disappointed with the decision and maintained that Skywest’s shareholders should have a right to consider a cash offer.
He says CVC is further disappointed with the Skywest board because CVC is and would remain, Skywest’s largest shareholder, and it was through CVC’s support that Skywest was able to finance its $4.2 million convertible note issue prospectus in September 2003.
"CVC reasserts that Skywest managing director Scott Henderson invited the CVC bid," Mr Chatfield says.
"In the lead up to the bid Mr Henderson entertained CVC’s directors and investors in Perth at Skywest in a series of meetings and presentations on the Skywest business.
"Mr Henderson also travelled to Singapore on several occasions and made several presentations to CVC and potential investors.
"The extremely vigorous public relations campaign and regulatory campaign waged by Skywest directors to prevent its shareholders accepting CVC’s offer is, in CVC’s opinion, not in shareholders’ best interests."
It is this last point that could have cost CVC the battle for Skywest.
Skywest was very aggressive with its public relations, using Porter Novelli to ensure that its side of the takeover story was out in the public domain.
For its part CVC preferred to let its takeover documents do its talking. Mr Chatfield turned down numerous requests from WA Business News to put CVC’s side of the story.
And what a story the takeover battle was.
CVC gradually worked its way up Skywest’s share registry, coming on as part of the convertible notes issue.
It launched its bid and then, after the company announced a huge results downgrade, called for an extraordinary general meeting to remove Skywest chairman Pat Ryan and cap directors’ fees.
That attempt failed with more than 80 per cent of Skywest’s shares being voted.
Then came revelations that Skywest chief financial officer Craig Lovelady, himself a former CVC director, had been leaking information to Mr Chatfield.
Mr Lovelady was summarily sacked, Skywest made an application of unacceptable circumstances to the Takeovers Panel and, ultimately, CVC’s bid was stopped.
Skywest chairman Pat Ryan said the Skywest board welcomed the Takeovers Panel decision.
"Although the decision remains subject to a review application we are pleased the current Takeovers Panel decision has effectively put a stop to CVC’s bid to take control of Skywest," he said.
Mr Ryan said Skywest would make a further public statement in the near future concerning the company’s full year result and its position on its long-awaited Australian Stock Exchange listing.
