Seppelt rejects bid

Press, 16 February 1984, Page 21

Seppelt rejects bid

NZPA-AAP Melbourne Directors of the South Australian wine producer, Seppelt, have rejected the sAust62.l7 million take-over bid by the Adelaide Steamship Company, Ltd, and termed the offer price as “grossly inequitable.” Their estimation of the 220 c a share bid was partly vindicated on stock exchanges when about 1.04 per cent of Seppelt’s issued capital was traded at 222 c a share. Brokers in Adelaide and Melbourne said most of the shares had been purchased on or on behalf of the Sydney broking firm, Ord Minnett. One broker speculated that trading might indicate the presence of soft drink pro-

ducer and Seppelt associate, CC Bottlers, Ltd, as a “white knight” or other companies wanting to build-up a strategic parcel. However, both the Seppelt general manager, Mr Brian Burns, and the senior executive at C-C Bottlers, Mr Peter . Griffiths, responded with terse “no comments” when asked about the entry of the latter as a white knight. Adelaide Steamship launched its take-over bid on Monday through the whollyowned subsidiary, Kirton In-

vestments, which already has a 19.9 per cent stake in Seppelt. The offer is conditional upon Adelaide Steamship’s winning 50 per cent of the issued capital and values the company at sAust62.l7M while the acquisition of the outstanding 80 per cent of the shares Would cost Adelaide Steamship sAust49.74M.

Seppelt directors said Adsteam’s offer was “grossly inequitable” because the corporate raider had purchased a 10 per cent stake at 240 c a share last month.