Zinc producer CBH Resources Ltd has approached the Takeovers Panel claiming Perilya Ltd's planned transaction with China's third-largest zinc producer is unacceptable and anti-competitive.
Perilya agreed to a share placement with Shenzhen Zhongjin Lingnan Nonfernet Co Ltd (Zhongjin) in December after rejecting a hostile all-scrip takeover bid from CBH Resources.
The transaction would give Zhongjin control of Perilya.
Zhongjin has paid a $10 million refundable deposit in relation to the placement and secured a call option from Perilya, which allows the Chinese group to acquire one of its major assets, Mt Oxide, if the placement doesn't proceed and the deposit can't be refunded.
CBH Resources claims that the call option, which is not subject to shareholder approval, and the placement together represent an "anti-competitive and coercive lock-up device which is unacceptable".
The company has approached the Takeovers Panel seeking a ruling that the call option be terminated and a meeting of Perilya's shareholders, called to vote on the placement, be deferred to allow CBH Resources to dispatch a supplementary bidder's statement.
CBH Resources has applied to have the meeting moved from February 5 to March 24.
Perilya shares had gained one cent, or 5.88 per cent to 18 cents by 1315 AEDT, while CBH Resources dipped 0.3 cent to 5.1 cents.
CBH Resources' rationale behind the takeover is to combine Perilya's Broken Hill zinc and lead operation with its adjacent Rasp project to share infrastructure and save costs.
