A.C.C. censure move

Press, 29 March 1982, Page 23

A.C.C. censure move

NZP A London 'The United Kingdom Takeover Panel has said that the twlpj Australian companies erfgaged• in the battle for Associated Communications Corporation - Bell Group and ' TVW Enterprises — were “deserving of censure’’ over deals in the companies' shares this month. It blamed the absence of financial advisers in London for breaches of the takeover code, saying violations would have been avoided if the companies had advisers and matje them aware of the actions they contemplated. The panel said in its report that TVW. which like Bell is effectively run by Robert Holmes aCourt, breached a rule of the takeover code by failing to announce details of purchase of A.C.C. shares by noon the day after the dealing date. , Bell Group broke a rule by not making sure that it immediately announced a higher offer price for A.C.C.’s

non-voting shares when it had bought shares above the then offer price of 85p. “These breaches were not in any sense deliberately made, but it did reflect a culpable failure to ensure that the requirements of the code were being met." The report said “a direct consequence of this failure was that a false market ....

did exist for an extended period of time." The panel also criticised TVW's Australian stockbrokers, Potter Partners, who were said to have given the London brokers who carried out the deals the impression that they were buying on their own account. But T. C. Coombs, the London stockbroker who acted for Potter, "cannot escape some responsibility for the failure to prevent breaches of the code." it said. Also in London the Secretary of State for Trade has decided not to refer the proposed takeover of Associ-

ated Communications Corporation by Robert Holmes aCourt, the Australian entrepreneur, to the Monopolies and Mergers Commission. As the city row simmered about Mr Holmes aCourt's position as chairman of both A.C.C. and TVW Enterprises, the company making the takeover bid, Heron Corporation. made new moves to advance its own bid plans for A.C.C. Barclays Merchant Bank, acting for Heron, is now seeking to gain a reaction from Standard Chartered Merchant Bank, advisers to A.C.C., on two offers from TVW for A.C.C. worth respectively 95p a share for the non-voting equity and HOp a share. Barclays said that meant asking Standard Chartered which price offered by Mr Holmes aCourt it was’ supporting. Meanwhile, three new directors have been appointed to the board of Associated Communications Corporation after the resignations of Lord Matthews. Sir Leo Pliatzky and Sir Max Aitken.