The proposed $1.65 billion takeover of Africa-focused iron ore developer Sundance Resources Limited
(ASX:SDL) from its largest shareholder, China’s Hanlong Mining, looks to have hit a hurdle.
According to media reports Australia’s Foreign Investment Review Board has told Hanlong that it will not clear the bid until more findings are released from the investigation of suspected insider trading from Hanlong executives.
The reports come just one week after Sundance said it would back Hanlong’s improved offer of $0.57 per share.
Last month news broke Hanlong Mining executives were under investigation from the Australian Securities and Investments Commission for suspected insider trading.
The 2011 financial year Sundance Resources reported a net loss of $21.7 million.
