A long-running battle between Nordgold (LSE: NORD) and China’s Shandong Gold Mining over Cardinal Resources (ASX: CDV) has taken a legal turn after the Russian miner made a fresh application to Australia’s Takeovers Panel that accuses the takeover target of misleading shareholders.
Nordgold, which first approached Cardinal in March with an unsolicited A45.7¢ (US32.6¢) per share bid, put forward a “final and best offer” for Cardinal on Oct. 23. The bid, which the Moscow-based miner said on Oct. 26 it won’t sweeten, matched Shandong’s final A$1 (US71¢) per share offer.
Cardinal’s board, which has openly shown its preference for the Chinese bidder, qualified Nordgold’s move as “an attempt to cruel the auction for control of Cardinal, and has significant potential to deprive Cardinal shareholders of additional value.”
It added that its financial advisers believed Nordgold had technically made a higher competing offer after Shandong made its best and final bid. As such, Cardinal said, Shandong could legally depart from the statement and raise its offer price.
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