The Takeovers Panel has delivered a highly critical report on Territory Resources Ltd and its chairman Michael Kiernan, declaring he acted unacceptably during the ongoing takeover battle for his old company Consolidated Minerals Ltd.
Rival ConsMin suitor Pallinghurst Resources lodged a complaint with the Takeovers Panel over a range of public comments made by Mr Kiernan and Territory over the past month.
The Panel said many of the disputed statements "were likely to adversely affect the efficient competitive and informed market for Consolidated Minerals shares".
It intends to order that Territory make a corrective statement to the Australian Securities Exchange before the close of trade today.
The Panel will also order Territory to make further corrective statements in its bidder's statement in relation to the value of its proposed takeover offer.
The unacceptable circumstances that the Panel has found included Territory's failure to clarify the meaning of statements that Palmary Enterprises, which is owned by Ukrainian group Privat and owns 13 per cent of ConsMin, was "supportive of the Territory initiative".
The Panel also criticised the value Territory attributed to its own shares in various documents and statements.
Meanwhile, Pallingshurst has announced that it potentially holds up to 10 per cent of ConsMin.
Pallingshurst said it currently has 12.2 million in shares, representing 5.4 per cent of ConsMin's share capital, and convertible notes in the company that could convert into another 13.7 million shares - subject to certain conditions.
"This represents a potential holding in CSM of up to 10 per cent of the company's share capital, post conversion of all convertible notes on issue upon the occurrence of a change of control of CSM," the company said.
Pallinghurst said it currently had no intention of supporting any rival takeover proposal for ConsMin with its shareholding, noting a competing offer from Territory Resources was subject to a 90 per cent minimum acceptance condition.
A third potential bidder, Norwegian group Tinfos, is conducting due diligence on ConsMin and assessing the merit of a potential bid.
