By LIBBY MIDDLEBROOK
Corporate raider Guinness Peat Group is heading for the Australian Federal Court this month to try to overturn a ruling that could cost one of its subsidiaries $A60 million.
GPG's Australia-based subsidiary Mid East Minerals has appealed against an appeal tribunal December decision, requiring GPG to bid for Otter Gold's Australian subsidiary Allstate Explorations as part of its takeover bid for the gold producer.
Mid East, which owns 19.8 per cent of Otter, wants to lift its shareholding to as much as 51 per cent, but does not want to buy Allstate. Under Australian Stock Exchange rules Mid East is also required to make a bid for Allstate - a listed subsidiary of Otter Gold - because Otter holds a dominant shareholding in the company.
The company's executive director, Mike Jeffries, said the purchase of Otter's Allstate Explorations could cost the company about $A60 million.
"We are going to be pursuing things quite vigorously to put ourselves in a position where we can make an offer [for Otter]."
Meanwhile, he was waiting to confirm a March 9 meeting which could replace three Otter directors with GPG representatives. Mid East wants Mr Jeffries and GPG's Tony Gibbs and Gary Weiss on the board.
Court bid for move on Otter
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