Allied Press shares sell at 190c

Press, 11 October 1979, Page 29

Allied Press shares sell at 190c

I Allied Press sold at 190 ‘yesterday, 35c lower than 'the estimated value of the O.P.P. offer, and 47.5 c less than the price offered by Mount Cook Group. At the height of the takeover battle last week the [shares sold at 220 c. The sellers obviously are preferring cash now, rather Than waiting to see what an O.P.P. share would be worth. Otago Press and Produce was formed from the John M. Fraser group of produce, building supply, and real estate interests for the specific [purpose of bidding for Allied Press; it has undertaken to [apply for stock market listing as soon as possible. “The market is giving its opinion of what its shares will be worth,” one broker said. But another thought that the price was just an initial reaction to the end of the tatrie for control of Allied Press, with O.P.P.’s announcement on Monday that it had received more than 51( per cent acceptances to its bid. “There may be some; sour grapes involved in the I striking of the price,” he [ said. “I would not be selling. Allied Press shares at that: price, I would want at least 200 c in the present market.” Meanwhile, Mr Philip Phillips, general manager of the Mount Cook Group, said his company had already received a good number of acceptances to the amended offer of 237.5 c cash for each Allied Press share. He could not, however, estimate how[ many shares had been sent in. Although it does not now!

01 seem possible for his com-1 ■ pany to achieve control,, s I there has been no decision i s[to cancel the bid Or; y to accept a lesser number! than 51 per cent, he said. The directors hold a board s meeting next Wednesday,! the same day aS the annual! s meeting, and it will be up to! r the board to decide its next i move. “We are sitting back and e watching the situation now,” 1 he said. , Mount Cook would not - buy Allied shares on the ; market in an effort to build 1 up its per centage control of ;> the newspaper group, Mr - Phillips said. Asked if Mount Cook’s mystery backer j would become active on the ; market on Mount Cook’s ber half, he said. “I wouldn’t [ think so. He’s more interriested in Mount Cook than ! Allied.” The Christchurch company I urged Allied shareholders ■ who earlier accepted the : O.P.P. bid to also accept the (Mount Cook offer, which ; (means the irrevocability of ■ [the O.P.P. bid may be chal- : [lenged. [ Mount Cook hopes for a ;i “significant number” of [acceptances before its board t meeting. That is understandable — both parties may finish up holding O.P.P. shares, which : surely they do not want. However, now that O.P.P. has declared its bid unconditional, it is hard to see 1 how O.P.P. will agree to rei lease the early acceptances. I I It would seem that O.P.P. [has carried the day. I Mr Phillips said that he, [understood O.P.P. would not! lallow earlier transfers in

‘favour of O.P.P.’s offer to! jbe revoked, though some All lied shareholders were anx-! lions to get their acceptances ‘back from O.P.P. now that ; Mount Cook’s amended [higher offer had been received. i “A lot of people in Dunedin are now totally confused,” said Mr Phillips. “O.P.P.'s declaration that their bid is unconditional will however enthuse many shareholders to accept the Mount Cook offer. “O.P.P. had early assurances of 25 per cent of Allied capital from the Smith family of Dunedin, and later acquired 16 per cent from the Christchurch company, H. W. Smith, Ltd, but it has [ taken them a long time to get the rest of their 51 per| cent,” Mr Phillips said.