IEL increases Pacific stake

Press, 27 July 1988, Page 34

IEL increases Pacific stake

NZPA-AAP Sydney Sir Ron Brierley’s Industrial Equity has continued building up its stake in cash-box company Pacific Assets, the target of a merger play by Paynter Dixon Holdings Ltd. lEL has disclosed it holds 10.08 million shares or about 11.45 per cent of Pacific Assets acquired through on-market purchases over the past three weeks at prices between 68c and 81c a share. The move has increased speculation that lEL may be forcing Paynter (no relation to the Christchurch company) into increasing its offer for Pacific Assets or that lEL may itself make a bid for the company. Paynter, an Australian construction and development group, on July 6 announced a four for five share swap bid for Pacific Assets which values the

company at sAust64M (SNZ7BM). The two companies are already closely linked through cross shareholdings and two common directors, and the boards of both have already said the merger would be in their best interests. The substantial shareholder notice lodged by lEL on Monday revealed that it began buying into Pacific Assets the day Paynter’s bid was announced. lEL managing director, Mr Rod Price, has been quoted as saying the Paynter offer undervalues Pacific Assets, but he could not be reached for comment last night. Pacific Assets shares closed up 1c at 77c, compared with the price of 64c before the bid announcement. Paynter was untraded but last closed in Sydney at 93c. '