Cygnus Metals (ASX:CY5) has become the subject of a Takeovers Panel application lodged by shareholders Foboce and Natalie Obrart in relation to its proposed acquisition by Central Asia Metals (CAML) through a scheme of arrangement, according to an Australian bourse filing on Wednesday after market hours.

The applicants allege that the deal's protection mechanisms, including shareholder voting commitments, no-disposal undertakings, a call option over Ocean Partners' 9.9% stake, and a reciprocal break fee, are anti-competitive and discourage rival bids, per the filing.

The applicants further allege that the company failed to disclose updated preliminary economic assessment (PEA) information for its Chibougamau copper-gold Project and did not adequately disclose or manage potential conflicts of interest involving director Brent Omland, who also serves on the board of Ocean Partners Holdings, the filing said.

The applicants are seeking orders for the company to provide additional disclosures, release the updated PEA, amend the shareholder voting arrangements, and cancel or restrict the call option.

The Takeovers Panel has neither appointed a sitting panel nor decided whether to conduct proceedings, and it has not commented on the merits of the application, the filing added.