COMMERCIAL Merc. Mutual alters tactics

Press, Volume CXVI, Issue 34046, 9 January 1976, Page 11

COMMERCIAL Merc. Mutual alters tactics

Zealand Prejj Asioeiatton—Copyright! SYDNEY

Mercantile Mutual Insurance Company, Ltd. is changing its tactics in its defence against an unwanted take-over bid from Australian Guarantee Corporation. Ltd.

The group has approached; the Trades Practices Commission in an effort to convince i the T P C. to refuse a clearance for A.G.C. on the basis; of “public interest.” said the! managing director of Mercan-

(tile Mutual (Mr W. Cowper). Other banks would move) I into life insurance on a large scale if the bid succeeded, ) because historically, banks followed one another into new areas of business, he said.

The T.P.C. had asked for further information relating to Mercantile’s approach. However, the chief executive of A.G.C. (Mr G. Carter). said that senior legal advice indicated that the take-over would not contravene the Trade Practices Act. “We also approached the Trade Practices Commission, and in the discussions we held no concern was expressed,” he said. In going to the T.P.C., the directors of Mercantile are apparently fearful that thev have insufficient ammunition to fight off a determined A.G.C. bid. A.G.C. has shown that it is willing to increase its offer | to entice Mercantile’s shareholders. The prospects of a good cash profit could force ma shareholders to accept the A.G.C. bid. A.G.C. is offering 325 c for each Mercantile share, and is also buying Mercantile scrip on the market.

Bisley issue full The $500,000 debenture issue of A. M. Bisley and Company, Ltd, is now fully subscribed. The directors are accepting oversubscriptions up to an additional $250,000 as allowed for in the prospectus. but w’ill limit the oversubscriptions to allow for renewal of existing debentures falling due during the next four months. Australian appointed Mr B. C. Ryan, an Australian, has been appointed deputy-general manager of Consolidated Goldfiields, Ltd, the directors announced in London. Mr Ryan, deputychairman of the company since last October, is also a director of Consolidated Goldfields Australia, Ltd.