COMPANY NEWS NATIONAL TOBACCO

Press, Volume XCIV, Issue 28128, 17 November 1956, Page 14

COMPANY NEWS NATIONAL TOBACCO

TAKEOVER BIDS CONSIDERED

RIVAL OFFERS FROM TWO FIRMS

Directors of the National Tobacco Company, Ltd., have declined the takeover offer by Godfrey Phillips, Ltd., but the offer is being referred to shareholders by Godfrey Phillips. A Press Association message from Napier yesterday reports the National Tobacco chairman (Mr T. B. McDonald) as saying that his directors have declined the Godfrey Phillips offer of 30s a share for the £1 ordinary and preference shares. The directors were considering an offer, made originally some months ago, from Rothmans. N.Z.. Ltd., which would give that company a controlling interest in National Tobacco, Mr McDonald said. This offer was under consideration before that of Godfrey Phillips was received. He said his directors regarded the Rothmans offer as the more attractive and finality was expected next week, according to the Napier message. The terms of the Rothmans offer have not been disclosed, but it was learned in Christchurch yesterday that they involve payment to the National Tobacco shareholders in preference shares in Rothmans. Godfrey Phillips Views “National Tobacco shareholders have not turned down Godfrey Phillips’ offer,” said Mr F. W. Littlejohn, managing director of Godfrey Phillips (New Zealand), Ltd., and attorney in New Zealand for Godfrey Phillips, Ltd., London, yesterday. As reported in a Press Association message from Wellington. Mr Littlejohn said: ‘ln fact we have today received acceptances from all over New Zealand. As our offer went out only 24 hours ago, we consider the response very good indeed. “The National Tobacco directors turned the offer down for reasons of their own, because they were obliged to promote the other scheme. Shareholders know nothing of the Rothmans offer because it is not yet settled after months of negotiation. At the moment they have only expectations of what may come next week.

“I feel that shareholders must be very confused and that they are entitled to some guidance from the directors, backed up with details of the Rothmans offer. Godfrey Phillips' offer is clear and straightforward. On the merits of each the shareholders must judge.”