“DOMINION” BID HEAVY SALE OF SHARES

Press, Volume CIII, Issue 30395, 20 March 1964, Page 1

“DOMINION” BID HEAVY SALE OF SHARES

(New Zealand Press Association*

WELLINGTON, March 19.

A flurry of selling of Wellington Publishing Company shares came after today’s announcement by New Zealand Newspapers, Ltd., that the cash price • of its take-over offer for Wellington 1 Publishing shares was to be increased from Is a share to £2.

In the third heaviest day of trading since the first take-over offer for the “Dominion” was announced, 1370 £5 shares changed hands at prices ranging from £2O to £23.

Last week, buyers were offering as little as £l6 a share. In addition, to the sale of ordinary shares—s 22 A shares, 365 B shares and 483 C shares —275 rights were also traded at £l4/10/0. Previous heavy trading days were February 28, when 1926 shares were sold, and the previous day, when 1464 changed hands. The new offer of New Zealand Newspapers, Ltd., which will reach “Dominion” shareholders early next week is substantially the same as the offer announced by the company on March 5 except that the cash payment a share is raised from one shilling to £2.

The offer announced on March 5 was for seven and a half fully paid ordinary £1 shares in New Zealand Newspapers and one shilling cash for each of the 80,000 ordinary £5 shares. The same offer was made for the 20,000 new ordinary £5 shares now being issued at a premium of £2/10/- a share. At that stage New Zealand Newspapers shares were traded at the peak price of 61/9 and the value of the complete bid was £2,320,000, the price of each share being assessed at £23/4/0. Shares Eased Since then New Zealand Newspaper shares have eased considerably. The last sale on the Wellington Stock Exchange was on Friday, March 13, when 50 were sold at 58/-. On March 16 the buy-sell quotes at Auckland were

57/9 —59/3. Today the quotes at Auckland were 59/3 —60/-. In their statement today the board of directors of New Zealand Newspapers, Ltd., said their new offer amounts to about £24 a “Dominion" share based on the latest sell, ing price of their own shares. The board said it did not

accept the assessment of the present situation of the takeover battle contained in a statement made earlier in the day by directors of the “Dominion”. On the contrary, there was a danger if the Thomson Organisataion were left alone in the field that it would accomplish its original purpose. The statement from the “Dominion” said any question of a takeover bid for the paper was now at an end after agreement between the board of Wellington Publishing and News, Ltd., of Adelaide. “The board is convinced that the shares of the flrmholding shareholders combined with the shares purchased by News, Ltd., constitute a definite majority of the total shares.

i “Any question of a take-over i bid is therefore at an end,” it said. ’ Heads of Agreement Negotiations with News. ' Ltd., had reached the stage , where heads of agreement had ' been signed, said a statement. “The board of the Welllng- ‘ ton Publishing Company is : satisfied that this basis for agreement means that effecj tive control of the ‘Dominion’ ' will remain in New Zealand , hands. j “On the above basis. News. 1 Ltd., will retain 14 per cent of the shares it has purchased in the Wellington Publishing 1 Company. 1 “The full number It has i actually acquired can be used - against any other take-over i offer, and the balance in ext cess of 14 per cent will, in due course, be transferred to I New Zealand domiciled sbare- > holders.