Zinifex's takeover woes continued as the directors of its target Allegiance Mining indicated on Friday they are confident of shareholders support for board recommendation to reject the Zinifex's offer.
In a statement to the stock exchange, they also said it is believed the offer is ‘unlikely to be Zinifex's last move'.
"Zinifex's offer has now been open for 2 weeks and to date Zinifex has received acceptances of just 0.01%," Allegiance said.
"Due to the board's ‘reject' recommendation, for shareholders to receive the maximum $1.00 per share offer, Zinifex will need to obtain a 30% relevant interest in Allegiance."
In its target's statement on Thursday, Allegiance said shareholders with combined interest of 11.1% in the company's shares on issue, and 12.2 per cent on a fully diluted basis, have put in writing that they intend to reject the offer.
Zinifex queried the basis of Allegiance's reject recommendation in the target statement.
"The target statement provides no explanation as to how Allegiance would support a similar share price at any time in the future,"
"Allegiance board has not provided shareholders with even basic financial information to enable them to determine the future value of their Allegiance shares, in the absence of the Zinifex offer," Zinifex said.
Shares in ZFX fell 32 cents or 3.2% to $9.60, while AGM shares fell 1 cent to $1.055.
