Company News COUNTER BID BY REEDS

Press, Volume C, Issue 29702, 21 December 1961, Page 19

Company News COUNTER BID BY REEDS

Offer For Fibre Containers

A counter bid against Bowater Paper Corporation for the capital of Fibre Containers, Ltd.. Sydney, has been made by Reed Paper Product (Holdings), Ltd. Directors of Fibre Containers said the merits of the offer were being considered but did not disclose its terms. Early this month Bowater Paper Corporation, Ltd., of England, offered more than £A3,400.000 in share and cash offer for the Fibre ordinary capital of only £520.500. These terms, worth about 32s lOd Aust, for each 5s ordinary stock unit, were recommended by the directors for stockholders’ acceptance. Prospects In a letter to the Sydney Stock Exchange, directors of Reed Paper Products said they expected a minimum earning rate of 26 per cent, on capital for the year ending June, 1962. and were in no doubt of maintaining 20 per cent, dividend unless there was a general economic downturn. Their opinion, they said, was based on sales performance and trends since September 30. Sales for the three months ended September, 1961, were down 16J per cent, on the previous corresponding period. For the two months ended November 30, sales were down 6j per cent., the letter said.