Tell all, A.B. Consol, buyers

Press, Volume CXVI, Issue 34147, 7 May 1976, Page 14

Tell all, A.B. Consol, buyers

(By

A. C. FOX.

assistant commercial editor)

There are no good reasons why the recent buyers of A.B. Consolidated, Ltd. shares should not disclose how many shares they have bought, and the reasons for their purchases. The daily rumours and speculations should be stopped, if only to concentrate the attention of the shareholders in A. B. Consolidated on the main issue; the future performance of their company. The decision that A. B. Consolidated shareholders have to make should be made on the best information that can be given to them by the directors of A. S. Paterson; and A. B. Consolidated, not in an atmosphere of sharemarket intrigue. Vague statements by both companies are inadequate as ground on which share-

holders can make a rational choice between the board of A. B. Consolidated as it stands, and one including A. S. Paterson nominees. The plans of A. S. Paterson have not been clarified; it might help it if they were. The rejection by the directors of A. B. Consolidated of A. S. Paterson is based on the confidence of the board that it has the company under control, and that the funds available to it are adequate, but there are still doubts abroad. If the turnover in A. B. Consolidated shares is any guide, a good number of the shareholders before the A. S. Paterson offer, and after the A. B. Consolidated report on Monday, have not been convinced by either group of directors. This has made it possible for buyers, other than A. S. Paterson, and the supporters of the A. B. Consolidated board, to acquire shares. Atlas Majestic, Ltd, has

; advertised its desire to invest in companies. Has it. as rumoured, bought A. B. Consolidated shares; if so why; and how many? Brierley Investments, Ltd. is unlikely to be on the sidelines. Has it, as rumoured, bought A. B. Consolidated shares; if so how manv, and why? If Atlas Majestic has bought shares, its interest is most likely to be in A B Consolidated as an investment only. Brierley Investments’ interest, if any, is probably \ n £® ln f? rcin g the ability of A. R. Consolidated to earn trading profits. The movements in the price of A. B. Consolidated shares, and the turnover do not suggest that any buyer in the market is interested m bidding the price higher or taking more than a shareholding sufficient to participate in improving the return o n shareholders’ investments.