Thos. Borthwick statement “face-saving”

Press, 10 June 1977, Page 14

Thos. Borthwick statement “face-saving”

I PA Wellington The statement by Thomas Borthwick and Sons (A’Asia), Ltd, that the Brierley Investment, Ltd. share- ' holding in the Gear Meat [Company, Ltd, would not (stop its takeover bid is (being described as “face-sav-ing” by the managingdirector of Gear (Mr L. A. Cameron). Borthwicks had little option but to say it to save face. This clearly shows hte original motive of Borthwicks has been to undermine the competitive strength of Gear by announcing a bid which had no hope of suc[cess, he said.

In making the announcement of a bid, Borthwicks had endeavoured to under-

■ mine the confidence the ' company’s farmers, customjers and employees, said Mr j Cameron. “Farmers and employees (have shown quite dearly that they are dismayed that a company like Gear could be dismantled. “Companies like Borthwicks must learn that they can’t use ties with Britain, or the excuse of rationalisation to manipulate the New Zealand work force and management. “Until these companies learn this lesson, New Zealanders will have to remain vigilant,” he said. The only way Borthwicks can save face now is for a Government authority to say no to its take-over proposal, he said.

j At this stage such decisions to Gear merely become [academic, but they may (have a far-reaching effect on loosening Borthwicks grip on New Zealand meat, said Mr Cameron.

Mr Cameron was delighted about the Brierley assurance that its shareholding in- Gear would not be disposed of against the recommended action of the Gear board.

It confirmed to New Zealand shareholders that any difficulties Gear had faced in the industry in the past would be overcome by the “Gear approach,” he said. Mr Cameron believes tha’ with Brierley’s investment i' the food industry Gear wi play a vital part in the pro cessing and export of food.