W. Neill board rejects bid

Press, 9 February 1984, Page 24

W. Neill board rejects bid

PA Dunedin Less than 1 per cent of Wilson Neill’s shareholders have indicated they will accept a take-over offer from Teltherm Industries, Ltd, according to Wilson neill’s chairman, Mr J. A. Valentine. In a letter to shareholders, Mr Valentine advises them not to accept Teltherm’s offer. “The directors believe that the best interests of Wilson Neill shareholders will be served by not accepting the offer made by Teltherm Industries,” Mr Valentine says. Teltherm announced last week that it would close its bid for 51 per cent of Wilson Neill’s capital on February 17. Its chairman, Mr J. D. O. Ellis, said it was unlikely that acceptances would need to be scaled, a comment which was interpreted as meaning Teltherm had not reached its target. Mr Valentine’s letter was in reply to a letter from Teltherm to Wilson Neill shareholders which claimed “several spurious claims about our offer and prospects” were made by Wilson Neill. “If you refer to the letters written, we merely quoted factual information about Teltherm,” Mr Valentine says in his letter. “The letter (from Teltherm) also stated that Wilson Neill had ‘engaged in a dubious issue of further shares ... at the expense of all shareholders.’ “Your directors emphasise that the businesses acquired as a result of the issue of shares are budgeted to produce commensurate profits and will in no way dilute shareholder interests,” Mr Valentine says. “In fact, combined with our other hotels, the acquisition of the Shoreline Motor Hotel, the

Taieri Hotel and the lease of the City Hotel will now make Wilson Neill the larget restaurant chain in Dunedin — a profitable area as has been emphasised in reports of other companies engaged in this particular field."