26/03/2009 - 09:32

Hannans calls for director resignation

26/03/2009 - 09:32

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Takeover target Hannans Reward has requested the resignation of one of its directors after he accepted the Terry Streeter-backed Fox Resources' takeover offer.

Hannans calls for director resignation

Takeover target Hannans Reward has requested the resignation of one of its directors after he accepted the Terry Streeter-backed Fox Resources' takeover offer.

In an update today, Hannans "strongly" recommended that shareholders take no action over the takeover, with Fox yet to issue a bidder's statement.

Today's statement comes as director Terry Grammer gave his pre-bid acceptance to Fox, which is offering one of its shares for every two Hannans shares held.

Mr Grammer's acceptance comes a day after fellow director Frank Cannavo accepted Fox's offer, which has boosted the suitor's takeover acceptances to 18.95 per cent.

Mr Cannavo has since resigned from Hannans board.

Today, Hannans chairman Richard Scallan requested the immediate resignation of Mr Grammer.

"Despite request, neither Mr Cannavo nor Mr Grammer has disclosed their involvement with respect to the bid," Hannans said in the statement.

"Hannans reserves its rights in relation to their conduct."

The takeover target reiterated that it considered the hostile bid to be "completely opportunistic".

Fox's main assets include the Mt Oscar iron ore project and the Radio Hill nickel operation in the Pilbara, which was last year placed on care and maintenance. The company has been focused on boosting its nickel resource at Radio Hill.

Hannans also holds an iron ore tenement, Jigalong, in the Pilbara and is exploring for nickel at its Forrestania project, located north of Western Areas' Flying Fox nickel mine. Mr Streeter also chairs Western Areas.

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