Dunlop Tipped To Win Berlei

Press, Volume CIX, Issue 32099, 22 September 1969, Page 18

Dunlop Tipped To Win Berlei

(N.Z. Press Association—Coppright) SYDNEY, September 19. Dunlop Australia, Ltd, has become the likely winner in the battle for Berlei United, Ltd, despite another increase in the offer from Triumph International Overseas, Ltd.

Triumph has notified Berlei that it will increase its offer to 375 c cash for each Berlei share. This is the same as the present value of the proposed Dunlop share and cash offer. However, the Berlei directors have recommended the Dunlop bid partly because they would prefer to see the group remain under Australian ownership. And it was revealed today that the Hestia Company, Ltd, and associates (through nominees) have bought a 34.35 per cent interest in Berlei on the market. If Dunlop’s bid succeeds, Dunlop plans to sell Berlei's Australasian assets to Hestia In exchange for a majority interest in Hestia. Hestia would not acquire Berlei (U.K.) which would be

retained as a wholly owned Dunlop subsidiary. Berlei (U.K.) was apparently the main reason for the bid from Triumph International, which is the biggest foundation gannent maker on the continent but is relatively small in England. Mr Michael Hershon, on behalf of Hestia and Hershon Securities Pty, Ltd, informed Berlei by telegram today of his group's buying activity in Berlei. He said that nominees now hold 720,428 Berlei shares and have under firm arrangement (with setlement early next week) a further 182,350 shares, making a total of 902,778 shares or 34.35 per cent of the number on issue. He also said that his group would accept the Dunlop offer of 280 c cash for each Berlei share plus one Dunlap share for every two Berlei shares. Dunlop’s shareprice has firmed from 175 c to 190 c since the terms of this bid were announced early this week, lifting the value of the offer from 367.5 c to 375 c for each Berlei share.