Australia’s High Court grants Fortescue leave to appeal against ASIC

Sept30,2011

Australian miner Fortescue Metals Group (Fortescue) has announced that the Australian High Court has granted Fortescue leave to appeal the Full Federal Court decision dated February 18, 2011 in the civil penalty proceedings brought by Australia's corporate regulator Australian Securities and Investments Commission (ASIC) against Fortescue and Fortescue's chairman Andrew Forrest.

Fortescue and Mr. Forrest requested to appeal the Federal Court decision to allow ASIC's appeal against the original judgment in favor of Fortescue and Mr. Forrest on December 23, 2009. The hearing date of the High Court Appeal has not been revealed yet.

As SteelOrbis previously reported, ASIC had alleged that Fortescue made misleading and deceptive statements about agreements with three Chinese enterprises which the company termed binding contracts when actually this was not the case.

Tags: Australia , Oceania , steelmaking , Fortescue
(sourced steelorbis)

BC Iron to challenge withdrawal of Hong Kong takeover bid

The W. Australian junior has applied to Australia's Takeovers Panel to challenge the validity of Regent Pacific's decision to terminate a takeover bid for the company

By Ross Louthean
Mon, 21 Mar 2011

PERTH - BC Iron (ASX: BCI) said today it had written to Regent rejecting its "purported" termination of the Scheme Implementation Agreement (SIA) relating to its intention to takeover BC Iron, and requesting that it be withdrawn.

BC Iron's managing director Mike Young said the company intends to file an application with the Takeovers Panel shortly, seeking a declaration of "unacceptable circumstances and orders requiring it (Regent) to proceed in accordance with the SIA."

Young said the company remains committed to ensuring all its shareholders have an equal opportunity to consider the merits of the scheme of arrangement in a fully informed manner.

Prior to the purported termination of the SIA, the Scheme Booklet and associated documents were well progressed.

Young said should the Takeovers Panel decide to intervene and provide the requested relief, BC Iron will resume the process of finalising the Scheme Booklet and Independent Expert's Report and, as a first step, will be in a position to promptly lodge the Scheme Booklet with ASIC (Australian Securities & Investments Commission).

When the original bid by Hong Kong-based Regent was made BC Iron directors recommended the bid. The takeover would have valued BC Iron at A$345 million (US$346.7 million).

BC Iron had been placed in a trading halt last Thursday after its share price dipped more than 4% to around A$2.54 (US$2.55) after Regent Pacific confirmed it was dropping the bid.

The company became an iron ore producer last month when the first shipment of its ore from Nullagine in Western Australia's Pilbara was shipped from Port Hedland to China in its 50/50 joint venture with Fortescue Metals Group. Fortescue provides the rail and port infrastructure.
(sourced mineweb)

ASIC wins FMG appeal

Saturday, 19 Feb 2011

The West Australian reported that the Federal Court agreed with the Australian Securities and Investments Commission's argument that Justice John Gilmour erred in finding Mr Forrest and his Fortescue Metals Group did not act dishonestly when they announced they had signed Chinese partners to build their Pilbara project.

Billionaire Mr Andrew Forrest faces being banned from running the company he turned into the country’s third biggest iron ore producer after the nation's corporate watchdog won its Federal Court appeal.

ASIC successfully argued that Mr Forrest deliberately engaged in misleading and deceptive conduct by making false, misleading and exaggerated statements to the ASX and the media about the nature of framework agreements signed in 2004 with three Chinese companies.

The agreements concerned the construction and financing of a mine, railway and port in the Pilbara. ASIC argued that Fortescue and Mr Forrest falsely portrayed the agreements as binding.

A judge had dismissed the watchdog’s claims in December 2009 following a trial in the Federal Court. But ASIC appealed against the finding in February last year, arguing the case had raised important issues that needed to be heard by an appeals court.

The six day appeal was heard in November last year before the Full Bench of the Federal Court, comprising Chief Justice Patrick Keane, Justice Arthur Emmett and Justice Ray Finkelstein.

Mr Forrest was not in court to hear the decision, which followed an appeal hearing in November after Justice Gilmour's 2009 judgment.

FMG and Mr Forrest have always denied any wrongdoing in the case.

(Sourced:thewest.com.au)