Takeovers Panel finds Mt Gibson bid acceptable

As it had previously indicated, the Takeovers Panel has declined an application from Aztec Resources Ltd to declare the takeover offer made by Mt Gibson Iron Ltd unacceptable.

The panel had previously advised Mt Gibson to disclose a forecast net profit after tax for the six months to December 31 2006, in a bidder's statement to Aztec shareholders.

However, the panel dismssed the application upon Mount Gibson's release of a supplementary bidder's statement this week.

In the meantime, Mount Gibson has solidified its position as Aztec's biggest shareholder, receiving acceptances to its offer to British company Cambrian Mining plc. The sale of Cambrian's shares to Mount Gibson make it Aztec's highest shareholder, with a 31 per cent stake in the company.

The full text of an announcement from the Takeovers Panel is pasted below

On 12 September 2006, the Takeovers Panel advised that it had considered the application by Aztec Resources Limited in relation to the offmarket scrip takeover bid for Aztec by Mount Gibson Iron Limited.

In its media release the Panel noted that it had accepted an undertaking from Mount Gibson to provide additional information in a supplementary bidder's statement. The information related to Mount Gibson's forecast consolidated net profit after tax for the six month period to 31 December 2006. The Panel had advised Mount Gibson that, in the absence of such disclosure, it was minded to make a declaration of unacceptable circumstances.

On 18 September 2006, Mount Gibson served its second supplementary bidder's statement on Aztec containing Mount Gibson's forecast for its consolidated net profit after tax for the six month period to 31 December 2006. Mount Gibson has now sent the document to Aztec shareholders.

The Panel considers that Mount Gibson has complied with the Undertaking and accordingly, advises that the Panel has dismissed the Application. The Panel will publish its reasons for decision on its website in due course.