Weir Group appeals takeover ruling

THE ongoing saga for control of Brisbane-based processing equipment manufacturer Ludowici continues, with the Weir Group seeking to appeal an Australian Takeovers Panel ruling that allowed rival bidder FLSmidth to up its offer.
Weir Group appeals takeover ruling Weir Group appeals takeover ruling Weir Group appeals takeover ruling Weir Group appeals takeover ruling Weir Group appeals takeover ruling

 

Staff Reporter

Weir Group has previously argued that FLSmidth had said, in a Reuters article on January 23, that its $7.20 per share bid was its final offer. It said FLSmidth should not be allowed to raise its offer beyond $7.20/share.

Weir Group slapped at $10 bid on the table which was then matched by FLSmidth. FLSmidth then trumped the rival bid with a $11/share offer.

Weir’s argument against FLSmidth was referred to the Takeovers Panel, which yesterday allowed FLSmidth to proceed with its sweetened bid of $11/share.

In a statement, Weir said it had carefully reviewed the panel’s determination and orders.

“Weir believes it is appropriate to make submissions to the review panel that the initial orders be set aside and that new orders be made to hold FLSmidth to its no increase statement under the Australian ‘truth in takeovers’ policy,” Weir Group said.

Weir Group is being advised by UBS and Freehills.

The bidder has extended its offer from February 23 until six hours after a decision of the review panel is made to the public.

Meantime, the Ludowici board continues to recommend the FLSmidth proposal.

Shares in Ludowici have slipped 1c to close at $11.15.

This article first appeared in ILN's sister publication MiningNews.net.

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