Excerpt from 'The Australian' today:[Source:...

Excerpt from 'The Australian' today:

[Source: www.theaustralian.com.au]

A little bit of Soul

IN making its bid for copper miner and explorer Exco Resources virtually unconditional, Washington H Soul Pattinson is signalling that it is really only after Ivanhoe Australia's 23 per cent shareholding and is indifferent whether it secures majority or full ownership.

Soul already owns a 13 per cent stake in Exco. Moreover, Soul's subsidiary Copperchem mines and treats copper sulphide ore at Exco's Great Australia mine near Cloncurry in Queensland under an arrangement under which Exco is to receive a royalty.

Ivanhoe bought into Exco in 2007. Soul yesterday acquired almost 7 per cent of Exco from Ivanhoe at 19c a share, taking its holding to the bid threshold of 19.9 per cent, and announced a cash offer at the same price.

Ivanhoe intends to accept the Soul offer for the rest of its shares in the absence of a superior offer.

The corporate regulator has proposed changes to the "creeping takeover" provisions of the Corporations Act, because it believes it enables company to secure significant influence, if not control, without paying a premium for control.

This commentator believes a useful change would be to require bidders to secure at least 50.1 per cent majority ownership and, if not, the bid fails and any acceptances must be returned. Such a regime operates in some other countries.


Ends.