Panel Publishes Reasons in Relation to Letters to Pinnacle Shareholders [07/11/2001] The Takeovers Panel

Wednesday, 7 November 2001

PANEL PUBLISHES REASONS IN RELATION TO LETTERS TO PINNACLE SHAREHOLDERS

The Panel advises that it has today published the reasons for its decision not to make a declaration of unacceptable circumstances in relation to letters sent by a Pinnacle director during Vanteck (VRB) Technology Corp's takeover bid for Pinnacle VRB Limited.

Vanteck applied for declaration of unacceptable circumstances in relation to the conduct of one of the directors of Pinnacle, Mr David Pethard. Vanteck alleged that the letters sent by Mr Pethard to shareholders of Pinnacle on 17 September 2001 concerning Vanteck's bid for Pinnacle, and the upcoming general meeting of Pinnacle's shareholders, gave rise to unacceptable circumstances.

Vanteck alleged that Mr Pethard's letters contained information that was misleading and defamatory of Vanteck and therefore gave rise to unacceptable circumstances.

The Panel was concerned that the tone and context of the Mr Pethard's letters was emotive and intemperate and had the potential to confuse shareholders.

Mr Pethard gave an undertaking to the Panel to prepare and send a letter to Pinnacle shareholders clarifying some of the remarks in his letters of 17 September. Accordingly, Accordingly, the Panel declined to make a declaration of unacceptable circumstances.

The sitting Panel in this matter is constituted by Ms Marian Micalizzi (sitting President), Ms Robyn Ahern (sitting Deputy President) and Ms Alison Lansley.

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