In an extraordinary general meeting this morning, QGC shareholders approved a placement of options to raise $A30 million to help fund the takeover of Sydney Gas.

During the meeting, QGC chairman Robert Bryan told shareholders the proposed bid remained on track.

But he said the deficiencies outlined by the Takeovers Panel, which last night ordered the company to issue a new bidder’s statement, were a result of Sydney Gas’ “failure to communicate meaningfully on its criticisms of QGC’s documents.”

“If Sydney Gas had told QGC what they ultimately told the Panel and adopted a reasonable approach rather than refusing to talk, the Panel proceedings would probably have been unnecessary,” Bryan said.

“One must expect Sydney Gas’ delaying tactics to continue, I am afraid.”

Sydney Gas executive chairman Stephen Kwik later condemned Bryan’s comments.

“We reject the QGC chairman’s assertions about trying to delay their bid,” Kwik said.

“Sydney Gas only made its application to the takeovers panel because we were unable to get QGC to adequately address our many concerns with the QGC bidder’s statement.”

Kwik added that Sydney Gas was still open to reviewing an “adequate” bidder’s statement from QGC.

“They have had two attempts to get it right so far,” he said.

“Perhaps now that the Panel’s views are so clear, QGC will get on with providing adequate information for shareholders.”

At the EGM, QGC’s major shareholders – Elph, ANZ Nominees and Kirn – approved the issue of 50 million options, which would later be converted to shares. The options will be placed at 60c each to raise $A30 million.

The issue will fund the redemption of $30 million of Sydney Gas convertible notes, held by The Australian Gas Light Company, upon a successful takeover.

Shareholders also approved another placement of 3.5 million shares at 60c to raise $2.1 million to fund the costs related to the bid.