Gold mining firm Andean Resources Ltd (ASX: AND) flatly denied on Tuesday that it intentionally violated the listing and merging rules when it did not inform the stock exchange about the takeover bid it received from Eldorado Gold Corporation.

The company maintained that the acquisition details were not transmitted to the Australian Stock Exchange (ASX) on August 30 because details of the proposal were still incomplete at that time plus the fact that Andean was also talking with Goldcorp Inc for a separate merger possibility, noting that both negotiations were confidential.

The Eldorado takeover proposal was eventually announced to the market on September 3, which prompted the ASX to send a letter to Andean, specifically inquiring why the target company failed to ask for a trading halt and divulge the buyout information to the market much earlier.

The ASX noted that in the absence of formal information about the possible merger between Andean and Eldorado, shares of the target company soared to a record high of $6.40 on the same day, coming from its August 12 value of $3.84.

However, on its response to ASX's inquiry, Andean gave assurance that it "always takes into account the speculative nature of its stock and the fact that it receives unsolicited proposals regularly."

At the same time, the gold mining company stressed that it "continues to believe that the announcement of non-material information, including an incomplete and preliminary proposal that it does not intend to pursue or that it has rejected, would likely result in false market securities."