AIC Fin. ends bid

Press, 7 December 1985, Page 24

AIC Fin. ends bid

PA • Wellington The. Auckland-based AIC Finance, Ltd, has abandoned its bid for control of a listed Australian financier, Alliance Holdings Ltd.

The chief executive of Mr Rod Worn, said that AIC does not. intend to proceed with its proposed purchase of 19.99 per cent of Alliance’s issued capital from Mercantile Credits, Ltd, and the offers it proposed to make for all the shares in Alliance. The announcement follows the statement of Mercantile, another listed Australian company, that it proposes to make offers for all of the shares in Alliance at 299 Aust cents a share.

Mr Worn said AIC was not prepared to bid for Alliance at a price exceeding 225 c. Accordingly, AIC decided not to proceed with the purchase of Alliance shares from Mercantile under their September agreement, which had not been completed as not all of the conditions had. been satisfied.

It was reported in September that Mercantile held 87 per cent of Alliance and FAI Insurance, Ltd, held 10 per cent. AIC had assured Australia’s Foreign Investment Review Boara that on acquiring 100 per cent of Alliance it would sell down its holding in the company to a controlling 51 per cent.