Agm told Glencar is vulnerable to takeover

The chairman of Glencar Mining has acknowledged that the company could be vulnerable to takeover because 75 per cent of shares from a rights issue last month are still held by underwriters.

Responding to a question from a shareholder at yesterday's a.g.m., Mr Richard Hooper said this would be "rather unwelcome".

Some 25 per cent of the 32.6 million shares issued at 12p sterling for every two ordinary shares held were taken by shareholders. The remainder are still held by Davy Corporate Finance and Williams de Broe, underwriters to the issue. Shares in Glencar traded at 19 cents on the Dublin exchange yesterday, less than half January's 48 cents rate quoted

Mr Hooper said he agreed with a shareholder who pointed out that this could lead to an overhang in the market or that "somebody could take advantage and acquire an unreasonable stake an unreasonable price".

The company raised $5.35 million (€5.77 million) net of expenses in the share issue which was approved early last month. Most of this money will be spent in Ghana. Glencar will spend $3.5 million on further developments at its gold mine at Wassa and $1 million at in Asheba.