Equiticorp bid gains approval

Press, 24 September 1987, Page 29

Equiticorp bid gains approval

By

PETER HALLWRIGHT

NZPA London Equiticorp’s bid for financial services group, Guinness Peat, has geen given the go ahead from the United Kingdom Department of Trade and Industry. The department said it would not refer the takeover to the Monopolies and Merger Commission. Nor would it oppose Equiticorp’s present holding of 39.8 per cent or its plans to buy Guinness Peat’s remaining ordinary shares. The Bank of England, which is empowered to vet would-be owners of British banks, has yet to rule on the suitability of the New Zealand com-

pany’s interest. Meanwhile, publisher Robert Maxwell has admitted he wants to acquire Guinness Peat “lock stock and barrel.” Speaking on television in Britain, Mr Maxwell put his shareholding in the financial services group at just under 15 per cent. Equiticorp’s stake stands at 39.8 per cent. Asked what he would regard as a satisfactory outcome of the battle for control of Guinness Peat, Mr Maxwell said: “For my group to be able to acquire Guinness Peat lock, stock and barrel by a recommendation of the board, for the New Zealanders to sell us their share, and for us to receive consent from the

regulatory authorities for such a purchase.” The Guinness Peat board told Maxwell last week his continued interest in the group was no longer welcome, while Equiticorp told him it would not consider selling its holding. Maxwell said he was astonished at a claim by Equiticorp director, Mr Peter Hunt, on the same programme that the Kiwis already had control of Guinness Peat. “Without permission of the Bank of England he is up the creek without a canoe, never mind a paddle. Control is an extraordinary word: I should have thought the Takeover Panel would be interested in that,” Mr Maxwell said.