Inquiry into BIL bid begins

Press, 11 June 1987, Page 26

Inquiry into BIL bid begins

By NICK BROWN

NZPA correspondent Sydney

Australia’s National Companies and Securities Commission has begun a hearing in Melbourne into the Brierley group’s controversial interest in Woolworths, Ltd. The Commission is inquiring into all the circumstances through, which Brierley Investments, Ltd, or its associate companies "acquired, or may have acquired, a relevant interest in approximately 40 per cent of the voting shares in Woolworths.” BlL’s Australian offshoot, Industrial Equity, Ltd, appeared to take the 40 per cent interest through BlL’s purchase of 30 per cent of Rainbow Corp, Ltd, as both Rainbow and lEL have 19.9 per cent stakes Through the deal, the Brierley group has circumvented an Australian Companies Code requirement of making a full take-over offer before exceeding a 20 per cent shareholding threshold The NCSC called the inquiry after being dissatisfied with details it was supplied on the transaction and the shareholding structures of BIL, lEL and Rainbow.

NCSC chairman, Mr Henry Bosch, was quoted in the Australian Financial Review that it appeared the Takeovers Code had been breached, but the Commission was “not sufficiently sure about that to take any action.”

The chairman of BIL and lEL, Mr Ron Brierley, told reporters last week he would see “how much waste of time and money is involved” before he committed himself to attending the Commission hearing.

It is understood that lEL chief executive, Mr Rod Price, attended the opening day of the hearing.