Success Of Merger Bid Queried

Press, Volume CII, Issue 30054, 12 February 1963, Page 16

Success Of Merger Bid Queried

Hie directors of ti»e Kaiapoi Woollen Manufacturing Company, Ltd-, announced yesterday that they had received 80 per cent of acceptances by ordinary shareholders in the Wellington Woollen Manufacturing Company for their offer and that they would accept further acceptances. Two Wellington woollen shareholders, however, have pointed out that acceptances have not reached 90 - per cent and have requested a meeting of shareholders to eon-

The ohiaiiriman of Kiaiapoi (Mir W. R. McCaililium) announced yesterday tihat the company's offer to WeStngton Woollen aharehoMess had been accepted by the various classes of sfaaireholders in ttet company as follows: Ordinary .. 80 per cent. A preference .. 79 per cent. B preference .. 78 per cent. “It has accordingly been decided by the board of this company to accept the foregoing, and to extend the term of the offer lor a further 14 days, tfcait is, until February 22,” Mr McCallum said. The Kaaaipod offer was nine ordiinagy 5s units in Kaiapoi flor every two ordinary £1 shares or A preference Shares in Wellington Woollen. In addition, ordinary and A

preference shereihiolders will receive one 5s convertible note maituring in 1967 flor each Share held. Hodders of the WetUington B preference Shares were offered 21s cash. When the Kaiapoi announcement wias made in WeUiington yesterday, acoord-

tog to a Press Aesocnatdon report, trwo shareholders of the Wellington Woollen' Company said they would request a meeting of shareholders to consider toe take-over bid. These shareholders considered that tihe figures quoted in the Christchurch message dad not give toe “90 per cent, acceptance by toe sharethoJders as required.” They did not agree that toe matter was finished.

Commenting on this report, Mir McCallum last evening quoted frqm toe terms of toe Kaiiapod offer to toe Wellington Woollen shareholders:

“The offer is condattonal on 90 per cent acceptance or such lesser percentage as may be acceptable to Kaiapod.”