Mercantile ignores shareholder vote, extends takeover bid for Bauxite Resources
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Sir Ron Brierley’s Mercantile has ignored a shareholder vote against its takeover bid for Bauxite Resources.
In a note to shareholders this morning, Bauxite Resources (ASX:BAU) said it was still fending off the takeover despite shareholders voting against it last month.
Mercantile Investment (ASX:MVT) has been savage in its pursuit of the company since November – and has most recently advised that it did not consider the rejection by shareholders as binding.
Last week, it extended its bid until May 21.
“BRL disagrees with Mercantile’s position. As a precautionary step, BRL’s solicitors have been instructed to obtain an opinion from an experienced commercial barrister in respect of the matter,” it told shareholders.
At the vote on March 23, BAU said more than 99 per cent of eligible shareholders who voted, did so against the proposal.
Most of the suitor’s shareholding has been bought on-market and has not been through acceptances from Bauxite shareholders, Bauxite chief Sam Middlemas told Stockhead previously.
Bauxite wants Mercantile to make an offer for the whole company, instead of trying to act as a “liquidator” by taking only half.