Skywest Limited 03 – Panel Receives Third Application in Relation to Skywest Limited [06/07/2004] The Takeovers Panel

Tuesday, 6 July 2004

SKYWEST LIMITED 03: PANEL RECEIVES THIRD APPLICATION IN RELATION TO SKYWEST LIMITED

The Panel has received a third application from Skywest Limited (Skywest) dated 06 July 2004 alleging unacceptable circumstances in relation to the off-market takeover bid by CaptiveVision Capital Limited (CVC) for all the fully paid ordinary shares in Skywest (the Bid).

Skywest alleges that unacceptable circumstances arise from communications and arrangements between a director of CVC, Mr J Chatfield, and the former CFO of Skywest, Mr C Lovelady, including Mr Lovelady:

  • passing to Mr Chatfield and CVC’s advisers of material, confidential and price sensitive information concerning Skywest; and
  • assisting Mr Chatfield with the planning for and carrying out of the Bid,

in each case, both before and after the announcement by CVC of the Bid.

Skywest has sought a declaration of unacceptable circumstances. It is also seeking interim orders to preserve the situation pertaining to the Bid pending a decision by the Panel and final orders including that the Panel:

  • set aside all takeover contracts formed by acceptances of the Bid; and
  • vest the shares obtained by CVC otherwise than through acceptances of the Bid while CVC had “inside information” in ASIC, for those shares to be sold.

The Panel has not yet sought the views of CVC or other persons potentially involved in the application and has therefore formed no views on the application.

The President of the Panel is appointing a sitting Panel to consider the application.

George Durbridge
Director, Takeovers Panel
Level 47, 80 Collins Street
Melbourne, VIC 3000
Ph: +61 3 9655 3553
george.durbridge@takeovers.gov.au