Maybe I should have hung on, I signed the paper once SMM directos gave OK - From SMH - April 27, 2007 Areva blocks Paladin's chance at conquering Summit, in bid to win marketing rights.
FRENCH nuclear group Areva has gone on the offensive in its bid to obtain lucrative marketing rights over Summit Resources' portion of the Valhalla/Skal uranium joint venture in Queensland.
Areva paid $126 million to snap up a 10.46 per cent stake in Summit from institutional investors, just one day before Paladin's final $1.2 billion scrip bid will close.
Areva is upset that Summit reneged on a deal for it to take an 18 per cent stake in the company - and obtain two-thirds of Summit's marketing rights over Valhalla - after Paladin raised its offer last week. "Areva decided it needed to take action to protect its position after this unexpected development," Areva Australia's managing director, Philippe Portella, told Xchange.
Paladin had indicated it was not keen to give away the marketing rights or to have Areva on its register, although it was open to an alternative alliance with the French company.
Portella said Areva didn't plan to buy any more Summit shares for the time being.
But it has effectively blocked Paladin from achieving compulsory acquisition of Summit, since Areva indicated it didn't plan to accept the offer for its stake.
Paladin couldn't be reached for comment yesterday.
It had received acceptances representing 34.3 per cent of Summit shares yesterday, but it is expected more will arrive at the last minute today
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