Mount Gibson takes on shareholder

The $2.5 billion mining group Mount Gibson Iron Ore has filed a formal submission to the Takeovers Panel asking that the purchase of a near 20 per cent stake by Shougang Concord International Enterprises Co. is reversed.

Shougang Concord bought the shares from Russian billionaire and Arsenal football club shareholder Alisher Usmanov at the end of January, sparking talk that the Pilbara-based mining group could become a takeover target.
However, after three weeks of investigation, Mount Gibson is believed to be arguing that Shougang Concord is an associate of another major shareholder, the Hong Kong-based APAC Resources, which holds a 20.2 per cent stake.

Mount Gibson, which is receiving advice from Freehills and UBS, is seeking a ruling of unacceptable circumstances, which usually results in the Takeovers Panel requiring that the transaction be reversed.

If the panel finds that for the purposes of Australian takeover law Shougang Concord and APAC Resources are associates, then Shougang could only buy the stake as part of a takeover offer for all shares.

Shougang is using legal firm Allens Arthur Robinson