Bauxite Resources (ASX:BAU) reported last month that its shareholders had voted against a proportional takeover bid made by Mercantile OFM for 50 per cent of their shares.
They have now just released that Mercantile has advised that it does not consider that the rejection of the Bid is binding and released an announcement containing a notice of extension and a notice declaring the Bid unconditional on 23 April 2018.
They disagree with Mercantile’s position and are seeking legal advice.
They will seek to delay completion of any contracts formed following acceptances of the Bid by shareholders until this position is clear.
Shares in Bauxite Resources (ASX:BAU) are trading flat at 6 cents.