Thos Borthwick countered Brierley share buying

Press, 11 June 1977, Page 17

Thos Borthwick countered Brierley share buying

PA Wellington Thomas Borthwicks and Sons (A’Asia) Ltd, was aware that Brierley Investments Ltd, was becoming a major shareholder in the Gear Meat Company, Ltd, and had arranged “contingency” plans to counter the move, Borthwick’s general manager (Mr P. T. Norman) says. After learning of the Brierley sharebuying about two weeks ago, Borthwicks stepped up moves to secure approval for the intended take-over offer from the authorities which are required to give consent. Borthwicks also stepped up moves to explain “the rationale” behind the takeover to as many people as possible.

There was little else Borthwicks could do in the situation — “we had to sit it out: we couldn’t buy shares ourselves,” Mr Norman says. Borthwicks remained confident that consents would be granted for it to make its planned offer, which was to be 180 c for each Gear share. Borthwicks would like to have contact with the Gear company directors, but this was impossible while they continued their present demands that Borthwicks withdraw its application to takeover Gear, and offer the three Borthwicks’ works to Gear. “There is just nothing to talk about,” Mr Norman says. Borthwicks owns the only adjacent, works to the Gear Petone works and can pro-

vide the only means of rationalisation. “We are the only logical alternative in moves to rationalise works and stock flows in the area.” “Borthwicks will be in contact with the Gear directors over the issue again,” Mr Norman says. “Until we are told by the Minister of Agriculture (Mr Maclntyre) that the take-over is off we are carrying on with our original plans,” a spokesman for the N.Z. Meat Producers Board says. Both the board and the N.Z. Federated Farmers are preparing backgrounders on the issues involved. These are expected to be discussed at farmers’ meetings within the next month.