Brierley’s still seeking more Wattie shares

Press, 31 January 1984, Page 22

Brierley’s still seeking more Wattie shares

Brierley Investments, Ltd, is still buying shares in Wattie Industries, Ltd, even though it already has a holding of more than 5 per cent.

Brierley’s chief executive, Mr Bruce Hancox, said yesterday that the company had bought about 5.5 per cent of Wattie’s ordinary shares.

“We are a fair way down the track to getting what we wanted” in Wattie’s, he said.

So far, Brierley’s had spent more than S3OM in buying Wattie’s ordinary shares at 515 c, the 12.5 per cent preference shares at 360 c, and the 16 per cent preference shares at 460 c each.

Two pension funds had approached Brierley’s to find out what time limit had been placed on the Wattie’s

buying effort. These funds required the approval of their trustees before selling their Wattie’s holdings, Mr Hancox said.

The holding that Brierley sought was above 7.5 per cent, but it would be under 10 per cent, depending on the outcome of the actions taken by the pension funds.

Brierley’s expected to spend more than S4OM, but it would be under SSOM.

Yesterday, a further 464,938 Wattie’s ordinary shares were traded at 515 c on the New Zealand Stock Exchange, plus 36,198 16 per cent preference shares at 460 c, and 327 12.5 per cent preference shares. The latest buying would raise Brierley’s holding in Wattie’s ordinary shares to 5.5 per cent, or 4,449,645 shares.

Combined with" the preference sales, the invest-

ment company’s holding would be 5.2 per cent. Wattie’s is the subject of an offer from NZ Forest Products, Ltd, seeking 65 per cent of the capital, but excluding the 35 per cent Wattie’s interest held by Goodman Group, Ltd.

The exclusion of this holding has resulted in legal action because the New Zealand Stock Exchange claims that the NZ Forest offer should be made for all Wattie’s shares that it does not already own. The stock exchange was going to suspend trading in NZ Forest’s shares, but the large forestry company was successful in obtaining a court injunction to prevent the suspension.

The High Court, in Auckland, will give a ruling next Tuesday on the issue of suspending the trading of the shares in NZ Forest.