Based on the volume weighted average of the trading prices on ASX of Perilya and CBH for the one month including 19 March 2008, and the value of the Perilya option, the merger would provide a premium to CBH shareholders of approximately 27%.

Perilya rose 15% and CBH gained 14%.

IMF to fund class actions against four Australian fund managers

Listed litigation funder IMF Australia today announced that it would fund shareholder class actions against four Australian fund managers that hit trouble after the global credit crisis emerged last year.

IMF announced today it would fund claims shareholders may bring against Allco Finance Group, MFS, Centro Properties and Centro Retail.

The claims against each of the companies relate to alleged breaches of their continuous disclosure obligations between August last year and in the first two months of this year.

During the six months, shares in the four finance companies slid dramatically as they struggled with heavy debt loads and complex financial structures. The four companies have all embarked on rescue plans, selling off some of their assets and funds to pay down crippling levels of debt.

Shares in MFS have been in a trading halt after a failed bid to restructure the company resulted in a near 70% price plunge to just 99 cents on January 18. Since then, the company has frozen its biggest fund and started a fire sale of assets to relieve a huge debt burden.

Shares in Allco Finance Group rose 33%, while Centro Properties units were up 3.3% and IMF shares added 10%.