‘Shot across the bow’

Press, 8 September 1982, Page 30

‘Shot across the bow’

PA Sydney Adelaide Steamship Company, Ltd, took a tentative step toward legal action over Woolworths Ltd's decision to scrap its sAustlB6 million (SNZ247 million) take-over of Grace Bros Holdings. Ltd. But Adsleam's lawyers described the move as "more a shot across the bow than the start of hostilities." In a letter to Woolworths released through stock exchanges. Adsleam legal counsel said that Woolworths' ‘ decision to withdraw its offer for Grace Bros was "an anticipatory breach of contract" between Woolworths and Adsleam.

“Notwithstanding this breach our client regards the contract as being on foot and will, if necessary, take appropriate proceedings in relation to it." He told NZPA that the ball was now in Woolworths court; "It's now up to them to do something about it." he said. Adsleam accepted the Woolworths offer for its 20 per cent stake in Grace Bros on August 27. just hours before Wool worths announced it was withdrawing the bid. The chairman of Bund Corporation. Ltd. Mr Alan Bond, said that Bond Corp, which

accepted the Woolworths offer in respect of its 20 per cent stake in Grace Bros, would be making a statement today. The Chairman of Grace Bros. Mr Michael Grace, said that the contracts which were created by acceptances by Woolworths are a matter of contract law between Woolworths and the stockholders who must seek their own independent legal advice. "Eighty per cent of the stock units is held by five groups who are able to look after themselves but there is still 14 per cent spread over 5000 individuals, families, and small companies." Mr Grace said.