UNUSUAL MOVE BY A.P.M.

Press, Volume XCVIII, Issue 28992, 5 September 1959, Page 16

UNUSUAL MOVE BY A.P.M.

Protection Against Take-Over “Raids” (N.Z. Press Association—Copyright) SYDNEY, September 4. Australian Paper Manufacturers, Ltd., is moving to protect itself against take-over “raids” from overseas. Directors have called an extraordinary meeting for September 28 to increase nominal capital, to alter some articles of association, and to introduce a new article.

This article prescribes, among other things, that ordinary shares transferred or allotted after the article is adopted will not have voting rights while they are shares in which a person who is not an Australian has an interest. Directors say the present voting lights of non-Australian shareholders will not be affected. Not Preference Also the article .dill not apply to preference shareholders, nor to ordinary shares to be allotted in 1961 in repayment of . the present £l.4m notes issue, until such shares are allotted. Directors also say it will not apply to voting on a show of hands. Directors say that the company operates in a keenly competitive world market, with competition coming largely from overseas suppliers. When import restrictions are lifted this will be increased, they state. They say they are less concerned with the possibility of a “take-over” at some time in the future than with the danger of an overseas competitor, for its own benefit, securing sufficient control to direct or influence the affairs of the company.