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http://www.businessspectator.com.au/bs.nsf/Article/Olympia-board-slammed-DC4Q3?OpenDocument
Olympia board slammed
Michael Kiernan’s Territory Resources may well be enjoying a rush of acceptances to its on-market offer for Olympia Resources, but that hasn’t held it back from dropping a large object onto the target statement and independent experts report.

Kiernan, who is offering 10c a share for Olympia, slammed the target’s board for failing to bring a single significant project into production, despite promises to do so in its prospectus, and said it had “Buckley’s chance” of raising any equity or debt in the near future.

Kiernan also took a long handle to the independent experts report provided by BDO Kendalls Corporate Finance, which values Olympia shares at 21 to 25c a share, and a recent proposal to issue options to directors at 15c a share.

“We believe (BDO) has not questioned their ability to achieve these forecasts, has not considered the effect that further delays would have on value, and has not questioned Olympia’s ability to raise future capital, marketing and prices assumptions,” he said.

Kiernan, though, is already in a position to take control of the company. Despite the protests of Olympia’s board, shareholders have rushed to accept Kiernan’s offer and he has doubled his stake from around 20 per cent to 40 per cent in the past fortnight.

Territory was part of a group that had a brief courtship with Consolidated Minerals last year, and Olympia is the first of renewed attempts by Kiernan to build a significant Australian resources house.

Euroz Securities is standing in the market on behalf of Territory while Paterson's is advising Olympia's board on their rapidly diminishing options.