A Brisbane-Based explorer listed on the Toronto Stock Exchange may have become the victim of a takeover hoax.
According to a statement made by boutique Ottawa broker Gannibal Securities, which was released on the popular website MarketWatch.com on Monday, Ottawa-based algorithmic trader Michael Bailey made a hostile $C238 million ($229m) offer to acquire all Nautilus shares at C97c each, a 207 per cent premium on the previous day's close.
News of the purported hostile takeover sent Nautilus shares up sharply until the target board said it had not received the unsolicited offer. "Nautilus has not had any contact with Mr Bailey or any entity controlled by him with respect to this unsolicited offer and has no prior knowledge thereof," the explorer said.
"The board of directors of Nautilus will consider the unsolicited offer if and when it is formally made."
What further aroused suspicions was that the announcement said Mr Bailey would be represented by Canadian law firm "Faskin Martineau", whose actual name is Fasken Martineau. A spokesman for the firm denied any involvement.
Nautilus, which is also listed on the AIM exchange in London, has been developing the world's first seafloor copper-gold project, Solwara 1, in PNG waters.
The alleged hoax comes just two days after a prank press release purporting to be from ANZ Bank caused a sharp fall in the shares of Whitehaven Coal.
