PMI Gold shares slid again yesterday, as uncertainty built up about whether the company would push ahead with a meeting tomorrow to approve its planned merger with Canada's Keegan Resources.
Sources said that major PMI shareholders, including Macquarie Group, Taurus Funds Management, Acorn Capital and others, collectively controlling as much as 30 per cent of the company, were still opposed to the $670 million merger. As the plan needs 67 per cent support from shares voted on the day, tomorrow's meeting will almost certainly end in defeat for the PMI board, which unanimously recommended in favour of the transaction.
There had been some speculation that, faced with defeat, the PMI board could pull the meeting, but at the close of trade last night no announcement had been made to the Australian market. PMI chairman Peter Buck would not comment on the company's plans yesterday.
According to merger documents filed to regulators, a $13 million termination fee could apply if either party pulls out of the deal before the shareholder meetings.
PMI shares fell 2.5Â¢ yesterday, or 3.7 per cent, to 64.5Â¢ after the company admitted it may have breached ASX listing rules in failing to disclose the sale of shares by a Ghana-based director in August last year.
It was also late in reporting of the expiry of incentive options for managing director Collin Ellison. PMI attributed the delayed disclosure, made last Wednesday, to an oversight by the Ghanean director, and to administrative error.
PMI shares are now less than half their 12-month high of $1.33.