Two of Perth's property development heavyweights continue to lock horns over Axiom Properties Ltd, which owns a 40 per cent stake in the Port Geographe canal development just north of Busselton.
Saramac Nominees has applied to the Takeovers Panel to have The Pivot Group's agreement for a cash injection into Axiom in exchange for a stake in the company, set aside.
If the application is approved, it would leave the path open for Saramac to go ahead with its rival bid for Axiom.
Saramac, a joint venture between Perth developer Luke Saraceni and Macquarie Bank, has sought a declaration of unacceptable circumstances and final orders that cancel or declare void an agreement in which Peter Laurence's private company, Pivot Group, is proposing to provide $5.3 million to cash-strapped Axiom in exchange for a 60 per cent stake in the company.
Alternatively, Saramac is seeking an undertaking from Pivot to vary or cancel an alleged "no shop and no talk" provision in the agreement with Axiom, which Saramac says does not contain an appropriate fiduciary exception allowing Axiom's directors to respond positively to an alternative proposal if the directors consider to do so would be in the best interests of Axiom shareholders.
Saramac last year bought a 60 per cent interest in the Port Geographe project, with the balance still owned by Axiom,
It launched its own rival bid at over twice the price of Pivot's at $10.6 million one month after the Pivot group announced its offer.
Both offers are based on an identical mix of shares, convertible notes and options.
Mr Laurance and Mr Saraceni have publicly questioned each other's bids, and legal action has been taken with two Macquarie Bank executives saying in Supreme Court affidavits that Mr Laurence told them that he had negotiated a substantial break-fee with Axiom which would bring the cash poor company to its knees if it had to be paid.
Mr Laurence disputes this allegation.
Late last year The Pivot Group applied to the Takeovers Panel to stop Axiom from sending information to shareholders on the two competing offers.
The Panel has decided to conduct proceedings in relation to both the Pivot and Saramac applications.
