Brierleys in Donaghys

Press, 28 October 1981, Page 26

Brierleys in Donaghys

The directors of Donaghys Industries, Ltd, yesterday issued a “don’t sell" warning to shareholders after they learnt that Brierley Investments, Ltd, has acquired a 10 per cent stake in the company. “The purchaser of the large number of shares traded last Friday was Brierley Investments. The buying represents about 6.6 per cent of the voting rights in the company,” they said. It is also understood that Brierley Investments, Ltd, purchased about 20 per cent of the recent 15 per cent spec pref issue — representing about 3 per cent of the voting rights in the company. The board has considered carefully the implications of these acquisitions, and strongly recommend shareholders not to sell their hold-

ings pending further advice.” However, a spokesman for Brierley Investments said that there was nothing sinister in the move, and that notification of the purchase of 5 per cent bf the Donaghy capital was merely done to comply with stock exchange listing requirements regarding disclosure. Brierleys was not planning a full take-over bid at this stage. He said Donaghys had an established place in the market, and that the company appealed as an investment. Brierleys bought 500,000 Donaghys ordinary shares late on Friday; Donaghys directors seem to believe that the Brierley holding is close to 600,000 shares. Brierley said the purchase of 500,000 shares was made at 160 c, which compares a last reported sale of 155 c.