It is reported that the Takeovers Panel has ruled against Regent Pacific Group Ltd's plan to cancel its bid for BC Iron Ltd because the market wasn't fully informed.

BC Iron was placed in a trading halt at the request of the company before the share market opened. It will resume trading following an announcement, or on Friday.

In a statement released to the ASX, the Panel said the Hong Kong listed resources investor had failed to disclose to the market that it had reserved the right to drop the bid in certain circumstances. As a result, the panel made a declaration of unacceptable circumstances in relation to the takeover.

The panel said because the termination clause in a scheme implementation agreement between Regent Pacific and BC Iron had not been disclosed, the acquisition of control over voting shares in BC Iron had not taken place in an efficient, competitive and informed market.

The panel had made orders, then, that Regent Pacific could not rely on that clause to terminate the agreement. The termination clause specified Regent Pacific could terminate the implementation agreement if its board publicly changed or withdrew its recommendation.

Another clause in the agreement specified Regent Pacific's board could change or withdraw its recommendation based on a specific written opinion from Senior Counsel on the matter.

Both of these clauses were disclosed only on March 22, when the implementation agreement was released by BC Iron, a week after Regent Pacific announced its board had decided to withdraw its recommendation.

The implications of the ruling were not immediately clear.

Regent Pacific Group and its subsidiary Regent Pilbara, made a bid for BC Iron in January, but withdrew it on March 15.

(Sourced from businessspectator.com.au and AAP)