Newspaper shares changing hands

Press, 18 July 1980, Page 16

Newspaper shares changing hands

N.Z. News, Ltd, is quietly buying shares in the Oamaru Mail Company, Ltd, the firm which publishes the evening newspaper, the “Oamaru Mail,” according to a Press Association report from Dunedin. ■ N.Z. News, which publishes the “Auckland Star” and the Christchurch “Star” evening metropolitan newspapers, has moved to replace the Dunedin evening newspaper. the “Evening Star,” which . folded in. November last year. _■ - t The arrangement is that the “Oamaru Mail” is printing a Dunedin edition of the Christchurch “Star” to go on sale in the afternoon . and evenings in Dunedin, This began on July 2; However, according to a report on June 14, N.Z. News took the Oamaru Mail Company by surprise when the Commerce Department gazetted approval for the company to make a take-over offer for the Oamaru publishing firm. According to the latest report from Dunedin, the number of shares to change hands was not known, but it was. expected that N.Z; N&ws would be trying to gain® a. sizeable holding before; it'makes an offer for the rest of the shares.

Many Oamaru Mail shareholders contacted in Otago and Southland in the past few days were unaware of the buying, which suggested that N.Z. News was making its offer, to those with more tenuous' associations with the district, the report said. Some local shareholders had heard nothing since they received “don’t sell” notices from their directors.

Some living further north have refused to comment on suggestions that approaches had been made to them, but Mrs F. M. Cameron of Mastertoh said: “I sent my scrip away two weeks ago,”

The law allows a company to buy from up to five shares holders in a- company before an offer has to become general. There was no limit on the number of shares which might be bought in this way, but in any case, N.Z. News had covered itself by obtaining the approval of the Commerce Commission to make* a bid for the Mail. The price being offered was ■ understood to be $l7 a share. . - Since the Mail has 40,000 shares on issue this puts a theoretical value of $680,000 on the company..-

When, or whether N.Z. News intends to make a bid for all the shares is not known.

The acting chairman of N.Z. News (Mr D. L. Stevens) said yesterday he was not at liberty to comment about dealings between the two companies.

“A statement will be made at the time the negotations are concluded,” he said. The chairman of the Oamaru Mail (Mr V. F. Bulleid)?. also ( said he had no comment to make about the story that N.Z. News was buying shares in the Oamaru company. “When the time comes I will, have something to say,” he said. •

Asked whether he that N.Z. News had been buying Oamaru Mail shares at $l7 each, Mr Bulleid replied: “No. I’m not in that particular deal at this stage.”

A statement about the dealings between N.Z. News and Oamaru Mail would have to made shortly, he said.