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AUSTRALIAN SUPREME COURT TO HEAR SAGASCO APPEAL; TRIAL TO PROCEED IN QUEENSLAND COURT

 AUSTRALIAN SUPREME COURT TO HEAR SAGASCO APPEAL;
 TRIAL TO PROCEED IN QUEENSLAND COURT
 HARTFORD, Conn., Nov. 12 /PRNewswire/ -- Magellan Petroleum Corporation (NASDAQ: MPET) said Australia's Supreme Court agreed earlier today to hear an appeal by Sagasco Holdings Ltd. of a lower court ruling that has barred Sagasco from proceeding with its unsolicited tender offer for the company's 51 percent held subsidiary, Magellan Petroleum Australia Limited.
 The high court, however, made it clear that -- notwithstanding the pending appeal -- the matter in dispute between Magellan and Sagasco should proceed to a speedy trial in Queensland's Supreme Court, Magellan said, noting that it appears the Sagasco takeover bid will remain on hold.
 Sagasco, an Australian gas company, is seeking to acquire all outstanding shares of the Magellan unit for about US$1.98 per share. Just before announcing its tender, on Sept. 3, it acquired a 13.8 percent stake in the unit from B.T. Australia Ltd., and contemporaneously acquired a 13.6 percent stake in the parent company for approximately US$1.80 per share, more than double the then-market price.
 MPAL's suit contends that the B.T. acquisition violates the Australia 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.
 According to a Magellan spokesman, a trial on the merits of MPAL's claim will be held at a yet-to-be-determined date.
 -0- 11/12/92
 /CONTACT: Mark F. Korber of Magellan, 203-240-6030/
 (MPET) CO: Magellan Petroleum Corporation; Sagasco Holdings Ltd. ST: Connecticut IN: OIL SU:


GK -- NY072 -- 0303 11/12/92 15:10 EST
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Publication:PR Newswire
Date:Nov 12, 1992
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