Australia's Takeovers Panel made a declaration of unacceptable circumstances in Forrestania Resources' (ASX:FRS) proposed takeover of Zenith Minerals (ASX:ZNC) following applications from Zenith shareholders Harvest Lane Asset Management and Ida Metal Investments, according to a Friday filing with the Australian bourse.
Forrestania accumulated a substantial holding in Zenith by April 13 but did not provide the relevant substantial holder notice until June 9, putting it in breach of ownership disclosure requirements, the Panel said.
It also found that the bidder's statement failed to disclose material information to Zenith shareholders related to the sale process for Enda May assets, for which Forrestania submitted a binding offer.
"The first supplementary target's statement was deficient because it did not properly engage with the material change in circumstances that had arisen as a result of the Edna May transaction," the Panel said, adding that it is still considering whether it would make any final orders.
Forrestania shares fell 4% in recent Friday trade.