Success claimed in take-over bid

Press, 2 October 1979, Page 6

Success claimed in take-over bid

Dunedin Otago Press and Produce, Ltd, has claimed victory in its take-over battle with the Mount Cook Group for control of Allied Press, Ltd, publisher of the two Dunedin papers.

At the same time the identity of the mystery investors was revealed. The victory claim was made last evening soon after a meeting of the Allied Press board, which showed a split between directors who had recommended acceptance of the offer and a group which preferred the Mount Cook Group’s amended offer.

The key factor in the battle appears to have been control of the 16 per cent owned by H. W. Smith, Ltd, the investment and timber company.

An unnamed group of Dunedin businessmen bought this holding at the week-end. It was said last evening that the investors were members of the Smith family, of Dunedin, and the Fraser family. The chairman of Otago Press and Produce, Ltd, Mr T. C. Fraser, said, “I have been advised by the group of investors who have purchased from H. W. Smith, Ltd, of Christchurch, their 16 per cent holding in Allied Press, Ltd, that they intend

to accept the offer of Otago Press and Produce, Ltd.

“With acceptance received and assurances given this means that Otago Press and Produce is certain to receive acceptances from more than 51 per cent of the capital of Allied Press.

“Otago Press and Produce will thus be able to declare the offer unconditional and end the uncertainty about the future of the company.” Mr I. A. Wood, a solicitor, issued a statement relating to the purchase of the H. W. Smith holding. It said: “Investors who are members of the Fraser family and the Smith family, of Dunedin, are to be the purchasers of the shares of Allied Press held by H. W. Smith, Ltd, of Christchurch. “The price paid for the shares is $2.25 cash, with spread payment.”

Statements were also made by Mr C. L. Nees, chairman of Allied Press, and a fellow director, Mr D. R. Hunter. Mr Nees said: “The directors of Allied Press, Ltd, can-

not make a recommendation to shareholders because three directors, Messrs J. C. S. Smith. V. G. Cavanagh, and D. S. Brathwaite, support the Otago Press and Produce offer — and three directors, Messrs C. L. Nees, R. D. Stewart, and D. R. Hunter, support the amended Mount. Cook Group offer and one director, Mr A. Anderson, considers that no recommendation should be made to shareholders.”

Mr Hunter said that because of recent developments he could no longer recommend that shareholders support the Otago Press and Produce offer.

The Mount Cook Group’s bid was now much more favourable than its first offer.

The general manager of the Mount Cook Group (Mr P. S. Phillips) said his company’s formal offer and amended offer, which were posted last Friday and Saturday, still stood.