Allied Farmers bid withdrawn

Press, 6 May 1981, Page 29

Allied Farmers bid withdrawn

? P A n . j ™ Auckland J Allied Farmers Co-opera-itive, Ltd, has withdrawn its bid for R. and W. *Hellaby, Ltd. < The bid, for a minimum 40 ■per cent of the company, was •made to Hellaby shareholders on April 7. « The decision to withdraw •follows a decision by the of Commercial Practices (Mr R.M. fOram) and made known on that he would, not ’consent to the bid proceeding. The examiner’s powers allow him only to approve or jjpply conditions to a bid. ’ The chairman of Allied "Farmers, Mr D. L. Hazard, f t said his directors were extremely disappointed at the paction of the examiner. i- It has now been well established that the delays and confusion caused a full pub- : die inquiry and referral to the Commerce Commission Mere quite untenable, he said.

Allied Farmers consider that it would not be reasonable and practicable, let alone fair to the shaeholders in Hellaby, to take action which would result in a period of up to six months of indecision. The “decision” by the examiner was not. really a decision, but an action which had enabled him to avoid making a decision on a matter which was, perhaps, a little controversial. In those circumstances, he said, the Allied directors saw no purpose in making any detailed comment upon the many statements which had been made by Hellaby through its chairman, managing director, and advisors, which -he had found, to be rather emotional and in many circumstances completely inaccurate. The decision to withdraw the bid for Hellaby did not change the company’s policy to expand its marketing ijn

the meat industry and move as rapidly as possible into full processing. The company would press ahead with the development of the Whangarei abbatoir, he said. The directors of Allied Farmers appreciated the support which had been received from Hellaby shareholders. It led them to believe that they would undoubtedly have obtained acceptance of the minimum 40 per cent sought. . As far as the shareholders of Allied Farmers were concerned, it was business as usual, and they could continue to look to the future with every confidence, Mr Hazard said. News of the withdrawal of Allied's bid caused Hellaby shares to ease on the New Zealand sharemarket yesterday. They opened at 122 c before easing to 118 c. Last week they were 133 c.