FTC urged: accept

Press, 25 July 1986, Page 11

FTC urged: accept

PA Auckland Shareholders of Fanners Trading Company, Ltd, were yesterday again advised by company chairman, Mr A. L. Laidlaw to accept the takeover offer from Chase Corporation, Ltd. Addressing shareholders at the annual meeting, Mr Laidlaw noted unknown parties were in the market offering 210 c and 211 c for FTC shares. He said FTC directors did not know their identity.

Mr Laidlaw noted that the parties could get out of the market at any time.

He also noted the offers were cash, not scrip. He said that, by accepting the Chase offer, shareholders could continue their association with FTC if they took the scrip alternative.

In reply to a question from a shareholder, Mr Laidlaw said the action by the parties in the market was “normal” in take-over situations today. He said the aim was often to prevent the party

completing a take-over bid. Such parties could hold the bidder “to ransom” for a higher price, he

said. He said he would be accepting the scrip offer from Chase for his own FTC shares. He presumed other directors would do likewise. Mr Laidlaw said sales for the first quarter of the present financial year were up 14.5 per cent. Strong sales growth was expected until the beginning of October and the introduction of the goods and services tax.

FTC, he said, was planning to have strong promotions for the otherwise quiet period to follow the introduction of GST.