• Cue Energy's application regarding Horizon Oil's takeover bid declined
• Echelon's intention statement and potential conflicts deemed acceptable
• Insufficient evidence of association between Echelon and Horizon

The Takeovers Panel has declined to conduct proceedings on an application from Cue Energy Resources Limited (Cue) in relation to Horizon Oil Limited's (Horizon) off-market takeover bid for Cue. Cue's application concerned a pre-bid agreement between Horizon and Echelon Resources Limited (Echelon), pursuant to which Echelon agreed to sell approximately 19.99% of Cue's shares to Horizon. Cue also raised issues around alleged insider participation, an alleged undisclosed association between Horizon and Echelon, and alleged contraventions of consultancy agreement provisions. The Panel found that Echelon's intention statement was consistent with its guidance, there was no reasonable prospect that the timing of the Echelon nominee directors' notification of potential conflict would give rise to unacceptable circumstances, there was insufficient evidence to support an inference of association between Echelon and Horizon, and the alleged consultancy agreement breaches were unlikely to give rise to unacceptable circumstances. Accordingly, the Panel declined to conduct proceedings, as it concluded there was no reasonable prospect that it would make a declaration of unacceptable circumstances.