‘Grey Star’ says don’t sell

Press, 20 December 1986, Page 30

‘Grey Star’ says don’t sell

PA Greymouth Directors of the the Greymouth Evening Star Co., Ltd, have recommended that shareholders do not sell their shares to Como Holdings, Ltd, of Hokitika. In a statement the

chairman, Mr A. W. Keown, said the offer had been fully considered and it was the unanimous decision that shareholders be advised not to accept the take-over offer by Como.

Mr Keown said Como Holdings had noted in the offer that it “believed that the Greymouth Evening Star company is well positioned to take advantage in the future of giant strides being made in the technology of communications, and to take advantage of these opportunities which are capital intensive the Greymouth Evening Star will require additional capital and an aggressive management

team.” In fact, Mr Keown said, the newspaper is produced on a first rate plant, all in the the modern technology. Nearly a million dollars has been spent in the past eight years on land, buildings additions and offset and computer typesetting plant. In so far as capital is concerned, Mr Keown said that along with a number of New Zealand daily newspapers, it had acquired considerable funds from the restructuring of Reuters Holdings pic. This was ample for foreseeable developments.

In addition the directors had sought a valuation of

the shares which had disclosed that the value was markedly higher than the price offered by Como Holdings.

He said the directors believed the present structure and management of the company make it ideally placed to meet and adapt to changing times in the newspaper and printing industry.

“Como Holdings, Ltd, has given no undertakings to the staff of about 50 regarding their future welfare and security,” Mr Keown said. “We have a dedicated staff and our concern is as much for them as it is for our shareholders.”