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APPEALS COURT UPHOLDS MAGELLAN PETROLEUM AUSTRALIA LIMITED; SAGASCO ENJOINED FROM PROCEEDING WITH TENDER

 APPEALS COURT UPHOLDS MAGELLAN PETROLEUM AUSTRALIA LIMITED;
 SAGASCO ENJOINED FROM PROCEEDING WITH TENDER
 HARTFORD, Conn., Oct. 23 /PRNewswire/ -- Magellan Petroleum Corporation (NASDAQ: MPET) said the Queensland Court of Appeal has upheld the company's 51-percent-held subsidiary, Magellan Petroleum Australia Limited (MPAL), in its action to halt Sagasco Holdings Ltd. from proceeding with its unsolicited tender offer for MPAL.
 The company said the court held it is likely to be established at trial that Sagasco had breached Australia's Corporations Law, and therefore barred Sagasco from proceeding with its tender until the trial can be conducted, noting that it is not now determinable when the trial might be held.
 In the Court of Appeal proceedings, the Australian Securities Commission supported MPAL's interpretation of the Corporations Law, Magellan said.
 The company also noted that the court ordered Sagasco to reimburse MPAL for all legal costs incurred during the proceedings.
 Sagasco, an Australian gas company, is seeking to acquire all outstanding shares of MPAL for A$2.75 (about US$1.98) per share. Just before announcing its tender last month, it acquired a 13.8 percent stake in MPAL from B.T. Australia Ltd. At the same time, it also acquired B.T. Australia's 13.6 percent stake in the parent company for approximately US$1.80 per share, which was more than double the then-market price.
 MPAL's suit contended that the B.T. acquisition breached the Corporations Law, which requires that, in a takeover situation, the offeror may not confer a benefit upon a target-company shareholder that is not offered to all other shareholders, Magellan said.
 -0- 10/23/92
 /CONTACT: Arthur B. O'Donnell of Magellan Petroleum Corporation, 203-525-1202/
 (MPET) CO: Magellan Petroleum Corporation ST: Connecticut IN: OIL SU:


TS-OS -- NY041 -- 4184 10/23/92 13:01 EDT
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Publication:PR Newswire
Date:Oct 23, 1992
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