Fortescue Metals Group fails to block Hancock Prospecting bid for Atlas Iron

Gina Rinehart’s Hancock Prospecting has won a skirmish with Fortescue Metals Group over Atlas Iron, with the Takeovers Panel rejecting a call by FMG to block her bid for the iron ore junior.

FMG had taken issue with Hancock’s disclosures, accusing the company of “misleading statements” and “material omissions” in its bidder’s statement for Atlas.

It had sought orders from the Takeovers Panel preventing Hancock from sending its takeover documents to Atlas shareholders until its complaint was heard.

However, the panel said today Hancock had agreed to update its disclosures in a replacement bidder’s statement “and clarify the operations of the bid’s conditions”.

“Given these developments, the panel concluded there was no reasonable prospect that it would make a declaration of unacceptable circumstances,” it said.

“Accordingly, the panel declined to conduct proceedings.”

FMG bought a 19.9 per cent stake in Atlas last month.

It was followed into the company by Hancock, which bought a similar holding before launching a $390 million cash takeover offer. The bid has been backed by the Atlas board.

Atlas shares were trading at 4.3¢ as at 1.15pm, against the offer price of 4.2¢.