Drillsearch drops Ambassador interest

Interest drop: Drillsearch takes Panel blow

Drillsearch Energy’s interest in takeover target Ambassador Oil & Gas has been cut by about 2 million shares on orders of the Australian Takeover Panel.

The company’s voting power has been taken from 30.43% to 29.42%, a backwards step in the company’s efforts to acquire total interest in the company.

Drillsearch had been competing with US player Magnum Hunter Resources to take over the company.

The Panel made a ruling that Drillsearch must not approve any acceptances of its bid offer or appoint any directors to the board.

It has now ruled that the conditions surrounding the takeover offer were unacceptable.

The companies have been going back and forth, trying to outvalue the other company’s takeover offer.

Magnum said Drillsearch was associated with each of the shareholders who gave an intention statement to accept shares and therefore acquired its pre-bid stake in breach of s6061.

The Panel ordered the reversal of some of the acceptances of the offers because of the circumstances surrounding this.

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