Formal Bell bid ‘risky’—BHP
PA Melbourne The formal Bell Resources, Ltd, partial takeover offer for Broken Hill Pty, Company, Ltd, (BHP) of sAust7.7o a share for 50 per cent of shareholders’ holdings is risky for shareholders, says BHP’s managing director, Mr Brian Loton.
He told a press conference the risk shareholders have to consider is the value of the 50 per cent they retain should the bid succeed.
He said it is obvious the formal offer of $7.70 “is a totally inadequate consideration for passing control of BHP to what in effect will be the control of one , man.”
Mr Loton said the inadequacy of the bid is obvious despite the fact that the BHP directors have only just received the documents and have not yet “formed their considered views” on the offer. He said Bell is seeking a free option over BHP shares for an indeterminate period. “Shareholders will not know until after the offer has closed whether in fact the conditions have been accepted by the Bell Group, and then they will have to wait about another month to know whether or not any, or all, or some of their shares have been accepted,” he said.
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Press, 19 February 1986, Page 39
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198Formal Bell bid ‘risky’—BHP Press, 19 February 1986, Page 39
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