U.E.B. bids for “Evening Post"

Press, Volume CXII, Issue 32874, 24 March 1972, Page 1

U.E.B. bids for “Evening Post"

. (New Zealand Press Association) AUCKLAND, March 23. U.E.B. Industries, Ltd, the large Auckland-based packaging and carpet group, will make a bid worth $7282,800 for Blundell Bros, Ltd, publisher of Wellington’s “Evening Post” — provided the directors of U.E.B. are satisfied on certain matters. They announced their intention to make the bid late this after-

noon. The offer would comprise one U.E.B. 50c share, plus one U.E.B. $1 debenture, plus $2.58 cash, for every two Blundell shares—a total of $2.38 a share, based on the latest price for U.E.B. stock units.

Hiis compares with $2.15 a share offered by Wellington Publishing Company, Ltd, in its proposal to merge the publishers of Wellington’s two newspapers; the total value of the Wei- ■______

lington Publishing offer is ] $6,579,000. The chairman of directors of Blundell Brothers (Mr H. N. Blundell) said this after- ; noon that his company had . been advised that an offer along these lines would be made. “We have only been advised of this and at this stage there is no comment I can make,” he said. A statement on the situation would be made after a meeting of his company’s board. “It will be either Saturday or Monday before I can make ..a statement,” Mr Blundell said. The bid was very much in the interests of U.E.B. shareholders, said Sir James Doig. this afternoon. Motive given He said the motive for the bid was to expand into a field closely related to its current activities. And from his own personal viewpoint, not necessarily that of the U.E.B. board, he did not agree in principle with the capital city having one company controlling both its newspapers. Interviewed in Auckland little more than an hour after the surprise announcement, Sir James Doig wps in a cheerful mood. Agreeing that an attempt by outside industry to make a significant entry into the newspaper publishing field was unusual, he said: “We rather like doing things out of the ordinary.” In a prepared statement, he said it should be plainly understood that the counterbid for Blundell Brothers was part of U.E.B.’s planned expansion into areas of activity related to its existing operations. “Apart from publishing, Blundell Brothers is a printing business; U.E.B. is very much in the printing business with a full printing works at

Wanganui, and its packaging units in various parts of the country, whose operations are based largely on printing techniques.

“Best interests”

“We consider the bid is in the best interests of U.E.B. shareholders because, if successful, it will allow us to expand our activities to the greatest possible advantage. “Apart from this vital consideration,” said the statement, “I personally do not, in principle, agree that the capital city of a country like New Zealand should be faced with the possibility of having one publishing company controlling both its newspapers. “Also, it should be stressed that U.E.B. has no current intention of going further into the publishing field.” Sir James Doig said he could not comment further on part of the stock exchange announcement which said the offer would be made subject to U.E.B. directors being satisfied “on certain matters!” He is to fly to Wellington tomorrow morning for discussions with Blundell Brothers directors and he agreed it was possible these matters would be resolved soon. Options open The statement said that if the bid were successful, U.E.B. would have “a number of options” open to it in the profitable running of Blundell Brothers, but he was not in a position to comment on these at present.

“Let me emphasise most strongly that our bid has nothing whatever to do with the fact that U.E.B. was involved in the Associated Net-

work group which presented the case for an independent second television channel, and recently withdrew from this project.”

Sir James Doig said the move had not been contemplated before last week’s an-

nouncement of the “Domin-ion-Evening Post” merger plan.

TV venture He denied that after the withdrawal from the television venture this was simply an attempt to get into another section of the communications industry.

“The very idea of associating the two never crossed my mind until it was mentioned to me this afternoon.”

When it was suggested that perhaps earning rates in the newspaper industry were generally lower than U.E.B. enjoyed, Sir James Doig commented that some newspaper companies did very well. As to the situation regarding Blundell Brothers earnings, he would not like to comment. But he added: “I am quite sure the future prospects are there.”

Asked about his view on the undesirability of both Wellington newspapers being controlled by the same company, he emphasised that in saying this he was speaking for himself, not for U.E.B.

. What harm could such a situation do to U.E.8.? Sir James Doig said it was possible if U.E.B. upset the company, it could get a bad press in Wellington, although he felt this point should not be emphasised. On the question of printing plant, some of it could be thought of as complementary to existing U.E.B. plant. .. Sir James Doig indicated that there might be a possibility of rationalising daily newspaper printing plant in Wellington—a principal reason given for the "Dominion”"Evening Post” merger—without going to the extent of both newspaper companies being under the same control. Asked if U.E.B. was at present a significant shareholder in any New Zealand newspapers, he said it was not. ! Developed quietly “We certainly have no further moves in sight at all in this particular field.” He agreed, however, that the bid i for the “Post” had developed very fast. > Did he see any possible barrier in U.E.8., an Auck-land-based company, operating a Wellington newspaper? "We’re a New Zealand-wide company. We started in Wellington, and we still have very significant interests in Wellington." Would the editorial independence of the Evening Post be guaranteed? "Yes, in the same way as it is guaranteed at the present time. Newspaper companies have boards of directors but they leave the editorial side independent The status quo would be maintained." On the question of the News Media Ownership Act requirement limiting the proportion of overseas ownership in a newspaper to 15 per cent, Sir James Doig said the overseas interest in U.E.B. would be less than 3 per cent. Asked if raising $3,945,400 for the cash portion of the offer would be any problem, Sir Janies Doig said: "There's so much money lying around the world looking for a home it’s nobody’s business. That is the least of the problems.’ The managing director of the “Dominion,” Mr J. A. Burnet, said from Hamilton tonight he had no comment to make on the U.E.B. offer. “It’s too early to assess the situation,” he said.

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