Panel Makes Declaration and Orders in Pinnacle No.11 Proceedings [16/10/2001] The Takeovers Panel

Tuesday, 16 October 2001

PANEL MAKES DECLARATION AND ORDERS IN PINNACLE NO.11 PROCEEDINGS

The Panel advises that the Pinnacle No.11 Panel has today made a declaration of unacceptable circumstances and final orders in relation to Vanteck (VRB) Technology Corp's (Vanteck) takeover bid for Pinnacle VRB Ltd (Pinnacle).

The review Panel's decision confirms the views of the Pinnacle No.10 Panel in its decision of 5 October 2001 relating to acceptances made by Credit Suisse First Boston Australia Equities Private Ltd (CSFB) on 22 and 23 September 2001 on behalf of Ronay Investments Pty Ltd (Ronay) and some other Pinnacle shareholders.

The Panel accepted that CSFB erroneously and mistakenly authorised acceptance of Vanteck's bid on behalf of Ronay and the other Pinnacle shareholders for approximately 1.6 million shares. Vanteck refused to consent to a reversal of the transaction which is necessary under the SCH Business Rules before the acceptances could be reversed. The Panel considered that the facts surrounding the acceptances, and the current circumstances of Vanteck's bid for Pinnacle, mean that the acceptances should be reversed.

The Panel's final orders require the erroneous acceptances to be reversed and CSFB to notify the affected Pinnacle shareholders of their right to vote, or to appoint a proxy representative, at the general meeting of Pinnacle shareholders scheduled for Monday, 22 October 2001.

The review Panel in this matter is constituted by Mr Simon McKeon (sitting President), Mr Kevin McCann (sitting Deputy President) and Mr Chris Photakis.

The Panel's reasons for decision will be available shortly on the Panel's website www.takeovers.gov.au .

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