Omnicorp says wait

Press, 10 January 1986, Page 9

Omnicorp says wait

PA Wellington Omnicorp Investments, Ltd, has advised shareholders of

Endeavour Services Corporation, Ltd, to delay any decision to sell shares until Omnicorp could resume buying the shares.

Omnicorp withdrew from the market on Wednesday, having bought 19.9 per cent of Endeavour’s shares and lodged an application with the Commerce Commission for approval to make a full takeover.

Earlier in the day Endeavour’s directors said their initial reaction to Omnicorp’s formal take-over notice was that it

was unlikely to be successful, because Young Nick Holdings, Ltd, had acceptances and confirmed sales for about 70 per

cent of Endeavour shares.

The Endeavour directors would not be recommending to the remaining shareholders that they accept the offer. Young Nick, headed by Endeavour’s managing director, Mr Neal Plowman, is attempting a management buy-out of the company. But an Omnicorp spokesman said in a statement that Omnicorp’s offer contained a better cash benefit for the shareholders than Young Nick’s offer. "Shareholders are entitled to expect their directors to welcome a move which advances their interests,” he said. “It is curious, to say the least, that the directors of Endeavour have not facilitated the competition for control of

the company which has increased the price to the shareholders.”

Omnicorp was offering 185 c per share (ex dividend), compared with Young Nick’s offer of 175 c (cum dividend). Whether or not Young Nick made its offer unconditional promptly, it was not entitled to close off acceptances before the offer closing date of January 20, the Omnicorp spokesman said. Omnicorp advised shareholders to hold off on any decision to sell shares at least until January 20 and until Omnicorp could resume buying the shares. •

Omnicorp would buy more shares as soon as it had statutory approval to go past 20 per cent.