NEW BID BY T. TOTABA
Higher Offer For Forests (N.Z. Press Association) AUCKLAND, Nov. 25. Taupo Totara Timber Company, Ltd., Putaruru. has raised its bid for Pacific Forests, Ltd., Auckland, from £671,012 to £772,124 in shares and cash to counter the £707,780 cash offer by Ellis and Burnand, Ltd., Hamilton.
Pacific Forests directors recommend acceptance of Taupo Totara’s latest bid, which is one Taupo Totara share (now worth Ils) plus 10s cash (raised from 7s) for each of the 735,356 Pacific shares, a total of 21s shares, compared with the 18s 3d for the first bid and 19s 3d cash from Ellis and Burnand. Directors of Pacific Forests say that it is in the interest of all shareholders that one of the offers should acquire at least 51 per cent acceptance.
“If support is divided we could find ourselves with neither party achieving the re quired percentage of acceptances and either or both could then withdraw, they say. The original offer stemmed from Taupo Totara, with which the company has enjoyed the closest association over the last 10 years, directors say, adding that Taupo Totara has been very fair in all negotiations. Acceptances in respect of 240,000 shares of the first Taupo Totara bid have already been received. “Directors feel obliged to make this clear-cut recommendation in spite of the possibility of a further offer being received. “The price is a good one and shareholders must now guard against further deliberation and delay.” Directors of Taupo Totara say in a separate statement that the latest offer will also apply to those who have already accepted the earlier bid.
They report that the first half of the current year has been very successful. Increases in turn-over and a most encouraging increase in net profit were recorded, they say. The subsidiaries taken over during the last 12 months are trading profitably with increased turn-overs. Interim dividend is being maintained at 5 per cent. Total last year was lifted from 11 2-3 per cent to 12i per cent.
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Bibliographic details
Press, Volume CIV, Issue 30918, 26 November 1965, Page 16
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335NEW BID BY T. TOTABA Press, Volume CIV, Issue 30918, 26 November 1965, Page 16
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