Paladin denies takeover accusations

SUBIACO-BASED Paladin Resources Ltd last week denied that its takeover bid for Perth-based Summit Resources Ltd was motivated by a current legal dispute between the two companies. Summit launched legal action against Resolute Mining Ltd and Paladin’s subsidiary Valhalla Uranium Ltd last year, claiming a breach of the JV through disclosure of information in an IPO prospectus. In a letter to shareholders last week, Summit asserted that winning the case against Valhalla and Resolute would give the company the option to acquire 100 per cent of the JV, which would in turn cause Paladin to lose its stake. Paladin managing director John Borshoff rejected the claims.