Panel Receives Application to Review ASIC Decision in Federation Bid for Pinnacle [29/01/2001] The Takeovers Panel

Monday, 29 January 2001

Panel Receives Application to Review ASIC Decision in Federation Bid for Pinnacle

The Takeovers Panel advises that it has received an application by Federation Group Ltd for a review of a decision by ASIC to decline to modify the Corporations Law to allow Federation to exercise options in Pinnacle. Federation would currently breach the 20% threshold if it exercised the options. The Panel received the application on Thursday 25 January.

Federation made takeover offers dated 2 October 2000, for all of the shares in Pinnacle, and for the two sets of listed options. Those bids have now closed. Under its bids, Federation acquired 10.6% of the voting shares in Pinnacle and 50% and 5% of the two sets of options. One set of the options expires on 1 February 2001, the second on 31 January 2002. Federation would have an interest in between 18.92% and 24.45% of the voting shares of Pinnacle if it exercised all of the options.

Reliable Power Inc announced on 22 January 2001 its intention to make a takeover bid for Pinnacle.

The President of the Panel, Mr Simon McKeon, is currently assembling a sitting Panel for this application.

Nigel Morris
Director
Corporations and Securities Panel
Level 47 Nauru House, 80 Collins Street
Melbourne VIC 3000
Ph: +61 3 9655 3501
nigel.morris@takeovers.gov.au