Email returns with 230c offer for Kelvinator

Press, 27 March 1979, Page 18

Email returns with 230 c offer for Kelvinator

■NZPA Sydney I J Email, Ltd, has made a’ new bid for shares in Kei- ■ . vinator Australia. Ltd. Email: , has increased its original I ’offer of 160 c a share and: 11 cash, to a cash offer of 230 c I ’;a share. However, the offeri .’applies only to sufficient! )i shares to increase Email’s! j; shareholding to 50 per cent, i J A spokesman declined to j idisclose the size of Email’s! .! existing shareholding m . i Kelvinator. j ; Email has also extended its' r ’offer to acquire all the pref-’ Jerence shares in Kelvinator! [at par. conditional on the: successful completion of the! I scheme for the ordinary’ I shares. I Kelvinator's announcement! i of a one-for-two share issue j has failed to stop the battle! for control of the South’ Australian-based domestic! appliance group. e Email was apparently! s’undeterred. and competition '■between Email and interests'

i friendly to Kelvinator has ( pushed' the share price to' j about 230 c on Australian! i markets. ’ Potter Partners were active 'on behalf of Email, and (Mclntosh. Griffin, Hamson jwere buying up scrip for the’ ! Kelvinator interests. I Kelvinator has predicted a! 158 per cent rise in earnings, ito sAust3.4M in the year to; !March 31. and a 3.75 c rise in’ 'annual dividend to 10c aj ; share. ’ Kelvinator has hired a ’public relations firm. Neilson.; (McCarthy and Partners, to I promote its side of the argu-; ment in a statement which, declared: “Kelvinator is not |in the takeover business and; (does not intend to be taken; (over itself.” ; The company’s “proudly 1 (guarded reputation for; (quality and service to the; Australian public” was based (on its traditional independ-j (ence of operation — “an /independence which the com-l

Ipany is determined to ’protect.", the statement said. The statement emphasised that although a licensee of Kelvinator International and (other United States corporations holding specialised ’patents, Kelvinator Australia has a large design engineering department doing original design and develop, ment work, as well ag modifying overseas designs to (suit Australian conditions. "It may not be generally , realised that Kelvinator is Australia's largest supplier of refrigerators, freezers and : room air conditioners.” it (continued. “It is bigger than the Email’s consumer (appliance division in these ! products. "An Email takeover of 1 Kelvinator would not be 4 (case of a large appliance (manufacturer acquiring a 'smaller manufacturer in (order to make the smaller (manufacturer more successIful,” the statement said.