Feltex increases H and P offer

Press, 28 May 1981, Page 18

Feltex increases H and P offer

PA . Wellington Feltex' New Zealand, Ltd, has topped Fisher and Paykel’s bid for the Auck-land-based timber group Henderson and Pollard, Ltd. Feltex increased its offer to 535 c for ordinary shares and 410 c for preference' shares, outbidding Fisher and Paykel by 10c in each case. The managing director (Mr Harold Titter) made the announcement, in a statement which said that the Examiner of Commercial Practices had approved a revised proposition from Feltex for a 45 per cent holding. The Examiner decided to not approve applications for holdings bf either 55 or 50 per cent. Mr Titter said his company’s original offer of 475 c and 365 c was generous, but

in light of the Fisher and Paykel ‘first-come-first-served” bid his company was increasing its offer. Feltex was now able to act, after the Examiner’s decision, Mr Titter said. Fisher and Paykel Industries, Ltd, on Tuesday scooped up a million H and P shares in a frontal attack on the market at 525 c each - 50c above the Feltex offer. Although not exactly a dawn raid, F and P had reached its goal while the sun was still climbing. Through the dramatic sharemarket flurry F and P increased its holding in H and P from 21 to 40 per cent. The chairman of Henderson and Pollard (Mr Carlton Pollard) said that his directors welcomed the success of the move by Fisher and

Paykel. The chairman of Fisher and Paykel (Mr M. Paykel) said that his comCwas delighted to have able to assist in maintaining the independence of H and P. As Feltex did not have approval from the Examiner on Tuesday when Fisher and Paykel made its offer, Feltex was not able to increase its current holding, Mr Titter said.

Fisher and Paykel, however, had received approval for their 40 per cent bid.

“Feltex believes that one of the disadvantages of the approach taken by Fisher and Paykel was that there were likely to be many unsatisfied shareholders,” Mr Titter said.