Company News WESTON BID ACCEPTED

Press, Volume XCIX, Issue 29269, 29 July 1960, Page 16

Company News WESTON BID ACCEPTED

Denhard Board Recommendation (New Zeaiana Press Association) WELLINGTON, July 28. The directon of Denhard Bakeries, Ltd, with one exception, have accepted the takeover bid made by George Weston (NJE.), Ltd., and recommend shareholders to do the same. In a circular letter to the company’s shareholders, the chairman, Mr A. C. Davis, says the Weston offer requires acceptance by August 10. Delay, he adds, might well “cause the loss of the Weston offer, which your directors consider too good to let pass.” Peerless Offer “The ‘offer’ from Mr Scott’s Peerless group has now reached you,” says Mr Davis. “You were no doubt amazed, as your directors were, to find that this is merely a three months’ option, which may or may not be exercised. It is therefore not a firm offer. “In his circular to you of July 21, Mr Scott said, with regard to the necessity of making application to the Capital Issues Committee, *this is the only reason that is delaying our group making a firm offer to you.’ Now that the Budget has removed his difficulties with the Capital Issues Committee, Mr Scott’s ‘firm offer’ turns out to be a mere option, because, of course, he still has his real task ahead of him, namely the raising of the necessary funds.” “Wait, or Carry On?” The alternatives to accepting the Weston offer are to wait for another real offer, which may or may not eventuate, or to carry on business, says Mr Davis. anticipated heavy capital expenditure and the probable impact on profits was made in the chairman’s annual report. The directors are motivated by the desire to obtain for shareholders the best price for their holdings if they wish to sell, Mr Davis concludes.