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Areva fights back for Summit

Thursday, 26 April 2007

The battle over Summit Resources and its stake in the promising Valhalla uranium deposit in Queensland, Australia, took yet another turn as Areva bought enough shares in the company to block a hostile takeover from Paladin.

The move came just days after Summit anounced that Paladin members on the Summit board held an 18.7% voting right - enough to block a pre-existing agreement Summit had made with Areva for that company to buy at least 9%, and up to 18% of Summit as part of a strategic alliance. Had Areva gone on to take the 18% option, it would also have marketed two-thirds of Summit's uranium.

Now, France's Areva has bought shares in Summit amounting to a 10.46% stake that is large enough to secure the alliance agreement. Areva managers said their company does not intend to carry out its own hostile takeover, but simply to protect its position with respect to the alliance agreement that it considers legally binding.

The Summit board still recommends shareholders take Paladin's latest offer of one Paladin share for every 1.67 Summit shares.

Further information

Areva
Paladin Resources
Summit

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