WALLACE ABSOLUTE RETURN LIMITED (WAB)

name changed to Armidale Investment Corporation Limited

administrators have been appointed to Wallace Funds Management P/L former fund manager for WAB

the Takeovers Panel has made further interim orders firming up earlier orders that Wallace Absolute Return Ltd must not ask the ASX to lift a suspension of deferred settlement trading of new shares from its rights issue and not issue or allot any new shares under the issue without Panel approval

Armidale Investment has offered Wallace shareholders 5.9c per share, conditional, among other things, upon discontinuation of Wallace's capital raising. Wallace says it is not within its control to discontinue or defer the closing date of the issue due to an underwriting agreement with E-quest Pty Ltd, who has not agreed to discontinue the issue. Armidale has said that it doesn't accept that Wallace is unable to terminate the issue and that it was prepared to indemnify Wallace against a claim by the underwriter up to the amount of the commission, $62,813. Armidale also said it was prepared to help with financing Wallace's business during the offer period and to "take any other reasonable steps to minimise the adverse consequences of discontinuing the rights issue"

the securities will be suspended from quotation pursuant to WAB's current rights offer

the Takeovers Panel has made interim orders requiring Wallace Absolute Return Ltd (WAB) to: * immediately take all action necessary to suspend deferred settlement trading of new Wallace shares to be issued under the renounceable rights issue; * as soon as possible announce on ASX the suspension of the deferred settlement trading of new Wallace shares; and * not shorten the offer period under the rights issue without first giving the panel 24 hours' notice of its intention to do so. This was in response to an application from Armidale Investment Company Pty Ltd in relation to the fully underwritten rights issue, which was announced by Wallace on May 5 and was seeking to raise $2.51m by issuing 71.79m new shares at 3.5c. On or about June 4 Armidale proposed a cash takeover bid for Wallace conditional on, among other things, the cancellation of the rights issue and achieving 50.1pc of acceptances