Takeover target Volante could find itself in trouble with the regulator following a complaint lodged with the takeover panel assisting in monitoring the hostile takeover bid by Commander Communications.

The unwelcome suitor has complained to the Takeovers Panel that Volante Group has failed to properly inform its shareholders regarding the acquisition it announced last week. Though obliquely mentioned in the company’s Target’s Statement, the Group announced to the ASX last week that it has entered into an agreement to acquire an as-yet unnamed software services company for $5million.

However, CEO Ian Penman let the fact slip to a Financial Review journalist ahead of time and could run foul of the regulator as a result.

Commander also believes there are a number of deficiencies in Volante’s Target’s Statement, including inadequate information relating to some potential contracts and insufficient detail on its already announced deal with the South Australian government. Commander is arguing that this failure to properly inform shareholders is preventing them from making informed decisions about whether to sell their stock.

Commander wants Volante to issue a supplementary statement and undertake corrective advertising, but the Takeovers Panel has not yet decided whether to start proceedings in relation to the application and is probably waiting from a response from Volante before proceeding.