25/09/2006 - 10:38

Alinta seeks court approval to keep 10% APT stake

25/09/2006 - 10:38

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Alinta Ltd will commence Federal Court proceedings to seek to overturn the Takeovers Panel ruling of unacceptable circumstances in their acquisition of 10.25 per cent of the Australian Pipeline Trust, and subsequent orders to sell.

Alinta seeks court approval to keep 10% APT stake

Alinta Ltd will commence Federal Court proceedings to seek to overturn the Takeovers Panel ruling of unacceptable circumstances in their acquisition of 10.25 per cent of the Australian Pipeline Trust, and subsequent orders to sell.

 

The full text of an announcement from Alinta is pasted below

Alinta Limited proposes commencing proceedings in the Federal Court of Australia seeking judicial review of the Takeovers Panel's ruling of unacceptable circumstances in relation to Alinta's acquisition of a 10.25 per cent stake in the Australian Pipeline Trust and the Panel's orders that the stake be vested in ASIC for sale.

Alinta CEO Bob Browning said: "It is hard to fathom how the Takeovers Panel have arrived at this ruling. Alinta firmly believes it has broken no law by acquiring this stake, nor done anything unacceptable. We consider the Panel has erred in its ruling and its orders and has failed a fundamental logic test.

"Alinta is particularly concerned by the Panel's ruling as, shortly after entering into the Merger Implementation Agreement, Alintaobtained relief from ASIC, to remove any question that Alinta acquired a relevant interest in AGL's holding in APA under that agreement.

"Although it did not consider it had acquired any relevant interest, it did this to remove all doubt. Alinta provided the MIA to ASIC as part of its relief application.

"Alinta believes that, contrary to the Panel's ruling, the relief it obtained removed the suggestion it had a relevant interest. In acquiring its 10.25 per cent, Alinta acted on the assumption the ASIC relief was effective. The Panel's ruling and orders appear to ignore these matters.

"In Alinta's view, the Panel's ruling is wrong in law, and made without regard to crucial matters. It is vital that companies are able to rely on predictable regulatory oversight in taking actions.

"This ruling of the Panel has regrettably left Alinta with no alternative other than seeking to have it corrected in a court of law."

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