Amalgamated Batteries finds flaw in bid

Press, 8 December 1978, Page 14

Amalgamated Batteries finds flaw in bid

The directors of Amalga- i . mated Batteries, Ltd, confirm i ; that they have received i notice of a take-over scheme 1 J from Motor Traders (N.Z.), s ! Ltd, offering 220 c cash for : the ordinary shares, 150 c for < | the cumulative participating 1 : preference shares, and 135 c < I for the specified preference ] : shares. : ! The directors of Motor i [Traders have not, as yet, < ■ formally stated their intentions concerning the l employees of Amalgamated i Batteries, as is required by , the stock exchange take-over i code. Amalgamated Batteries > says. i “The press release of|< (Motor Traders, announcingi< i the bid, states that the cu-i<

mulative preference shares of this company last sold at 115 c. This is incorrect as this was a sale of the specified preference shares. “The offer is stated to be conditional on acceptances being received in respect of a stated number (being 90 per cent) of each class of share, or such lesser number as Motor Traders may decide. “Following legal advice, the directors believe this condition is not in compliance with section 4 (1) of the Companies Amendment Act, 1963, nor clause (B) of part B of the first schedule I of that act, and accordingly [consider that the take-over offer is invalid, and the

. directors of Motor Traders are being advised accord- ; ingly,’’ Amalgamated Bat- : teries says. The directors’ initial reac-i : tion to the offer is that it is i too low, and is quite incon- ' sistent as between the i different classes of shares. ’ They are however, consid-: ■ ering the matter in associ- • ation with their advisers,; and should a fresh offer be; forthcoming which conforms! : to the Companies Amend-! ■ ment Act, they will make! their recommendation as re-, : quired. ’ Meanwhile the share-] ■ holders are advised not to! ■ sell their shares, say the! ■ directors of Amalgamated Batteries.