Mining company Tanzanite One said Saturday that it has issued approximately 83.74 million shares of B share stocks in order to thwart a hostile bid attempt by fellow miner Gemfields. On Tuesday, Gemfields reportedly said the move by Tanzanite One violated the principles of good corporate governance.

Gemfields said on Sept. 12 that it was making an approximate $51.4 million takeover offer for Tanzanite One, which would create the world’s largest miner of colored gems.

Tanzanite One’s management has urged shareholders to reject the offer, saying on Oct. 21 that the deal does not treat all shareholders equally, and confirmed its stance on Saturday.

“(Gemfields’) tender offer was launched without consultation with the company, is on a ‘first-come, first-served’ basis and has not been extended to all shareholders. No commitments or undertakings have been offered in relation to the ongoing governance of the company,” Tanzanite One said in a statement.

Gemfields said Tuesday that the move by Tanzanite to issue the B shares—representing 50.2 percent of the enlarged equity—to wholly owned subsidiary TanzaniteOne Mining would disenfranchise Tanzanite One shareholders, many of whom had tendered their shares to the Gemfields tender offer, Reuters reports.

The latest figures show the Gemfields offer was oversubscribed by 5.45 million shares with a total of 36.2 million shares tendered, Reuters reports.

Gemfields said the response to the tender demonstrated that many Tanzanite One shareholders were in favor of it, Reuters reports.

“This said, the Tanzanite One directors have unilaterally elected to seek to derail the tender offer,” Gemfields reportedly said in a statement. “This action puts at risk the ability of Tanzanite One shareholders who have tendered their shares to realize 42.75 pence a share in cash.”

Gemfields said if its tender offer failed as a result of the actions taken by the Tanzanite One board, it would most likely result in a significant fall in the Tanzanite One share price, Reuters reports.

JCK