K.P. again rejects Ravensdown bid

Press, 14 April 1978, Page 10

K.P. again rejects Ravensdown bid

The board of Kempthorne Prosser, Ltd, has again rejected the Ravensdown Fertiliser, Ltd take-over bid. “The bid will continue to be opposed. It is difficult to see what other response we could make,” the chairman (Mr P. W. Fels) said.

A group of South Canterbury, and Otago farmers clearly wanted a more positive response from the board to Ravensdown’s bid when they arrived at a special meeting of shareholders, called to approve a directors’ recommendation for the creation of rebate shares. Several attempts were made during the meeting to have the issues broadened to include discussion on the take-over bid, but Mr Fels was firm in ruling this out of order. After the special meeting the farmers took advantage of an offer from Mr Fels for

an informal discussion with the directors about their views on the bid.

This session, which lasted an hour, was closed to the press, but later Mr Fels said it had been a good exchange

s of views. “I think both sides ■ learned something from each • other,” he said. Spokesmen for the farm- ) ers, said their support for > Ravensdown remained uni changed. i The meeting passed all eight resolutions involved,

'all but two of them being machinery clauses tidying up the company’s articles. The meeting was asked to consider a resolution enabling staff to take out a shareholding. Mr Fels revealed that a telegram had been received from Brierley Investments, Ltd, on behalf of that company and Ravensdown, which stated that an undertaking was required from K.P. that this resolution, and another clause would not be put to the meeting. However, K.P.’s board has given an undertaking that it would not act on the clauses until the Ravensdown take-over bid had been disposed of. The meeting approved the resolution enabling the company to issue staff shares, and the other clause was withdrawn.