Wormaid courted?

Press, 5 November 1984, Page 30

Wormaid courted?

PA Sydney Steady trading in Wormaid International, Ltd, shares during the past week has fuelled market speculation that a take-over bid will be made for the diversified security-services and manufacturing group.

Almost 1.5 million Wormaid shares traded during the week for sAust4.3 million after opening the week at sAust3 each and closing at $3.10 a share. The continued trading has kept take-over speculation alive, with brokers identifying Mayne Nickless, Ltd, and Brambles Industries, Ltd, as the most likely suitors.

Wormaid produced a lacklustre sAustls.l million net profit for the year to June 30 on turnover of

$828.50 million, with brokers predicting some profit recovery in the current year as the benefits of general economic recovery filter through to the company. Brokers suggested that both Brambles and Mayne Nickless could make moves on Wormaid, primarily to lessen their own chances of being taken over. Mayne Nickless Is currently under a take-over threat from Australian Paper Manufacturer, Ltd, which is making a sAust3.2o a share ex-bonus offer to take its holding in Mayne Nickless from 19.9 per cent to 51 per cent. However, the odds-on favourite to make a bid for Wormaids is Brambles which the brokers noted increased its share investments from $2 million to

$l7 million during the year to June 30 but has not revealed where its major investments have been made.

“Brambles has been very tight-lipped about its investments but a company like Wormaids would be an obvious choice — it has the overseas operations which Brambles could use to strengthen its own international operations," one broker said.

“However, Brambles first consideration would be to protect itself against a takeover bid. The market is mystified about the trading in Wormaid shares but Brambles seems a likely buyer.”

Brambles is smaller than Wormaid in terms of turnover.