Bonds (N.Z.) cautious after good three months

Press, 23 July 1977, Page 17

Bonds (N.Z.) cautious after good three months

PA Wellington “Business had continued to be buoyant with sales and profits ahead of budget,” the chairman of Bonds (N.Z.), Ltd, (Mr A. S. Paterson) said at the annual meeting. “Present indications are that this pattern may continue a little longer. However, the momentum of business in textiles to be slowing down, and in the present economic climate it is difficult to predict the effect this will have on our business,” Mr Paterson said. The company’s move into domestic textiles such as curtains, and upholstery was still in the development stage, but they would become an important part of the company’s business, he said. Mr Paterson said that the performance of the N.Z. Stock Exchange Association in the recent first-come, firstserved offer by A. S. Paterson and Co, Ltd, for Bonds “left a lot to be required."

Regulations relating to first-come, first-served bids were promulgated by the association in 1971, but “It remains a mystery to me whether these bear any relationship to the present rules of the Wellington Stock Exchange,” he said. When A. S. Paterson and Co, advised the association of its offer the association inadvertently released the terms when the bid was supposed to have been kept under wraps until the close of trading for the week — in order to let the directors of Bonds consider it, and advise shareholders. Bonds subsequently received a letter of apology from the association, but “unfortunately this could not repair the damage which had already been done by its premature announcement and its failure to follow up immediately with our ‘don’t sell’ notice,” Mr Paterson said. As a result of the offer

(later raised) A. S. Paterson and Co. increased its shareholding in Bonds from 22.7 per cent to 49.9 per cent. Mr Paterson was critical of the first-come, first-served bids, pointing out that these bids had been outlawed in most overseas countries. Mr Paterson was in charge of such a bid when A. S. Paterson and Co, made its offer for A. B. Consolidated, Holdings, Ltd. A. S. Paterson Co. is seeking additional representation on the Bonds board. “Discussions are taking place to see that this happens gradually, as vacancies and other circumstances permit,” he said.

After the meeting Mr Paterson was questioned on the subject, and he admitted that in fact there would be an increase in the size of Bonds board in spite of his earlier comments that the moves would be gradual and as “vacancies and other circumstances permit.” He confirmed that one director of Bonds would reach the retiring-age, and that the present number of directors would be increased from six to closer to the maximum of 10 permitted. The chairman of A. S. Paterson Co, (Mr G. P. Shirtcliffe) and a director, Mr O. R. Gunn, Nelson, attended the Bonds meeting. Mr Shirtcliffe said after the meeting that the size of the Bonds board might be increased to fit in extra A. S. Paterson Co. nominees.

Mr Shirtcliffe would not say how many extra directors A. S. Paterson Co. might want on the Bonds board. One Bonds director, Mr R. J. Nankervis, is considered an A. S. Paterson representative as he is also on the board of the latter company.