Lonrho claim

Press, 28 November 1988, Page 35

Lonrho claim

NZPA-AAP London Australian businessman Alan Bond is “technically insolvent,” according to a financial analysis by Lonrho, the international conglomerate targeted by Bond for a possible takeover. The claim, which Bond Corporation rejects as "amateurish and superficial,” is contained in a 93-page report on the Bond group’s finances compiled by Lonrho chief executive, Mr Tiny Rowland. The report, due to be delivered to stockbrokers and London financial institutions today (N.Z. time), represents Lonrho’s toughest response yet to Bond’s accumulation of shares in the company. The Perth-based corporation has built up a 21.1 per cent stake in Lonrho, and analysts believe Bond is now poised to mount a full takeover bid following the sale of further assets in Hong Kong over the week-end. Bond’s sale of its interests in two of the colony’s television companies realised sAust32s million (SNZ433M), but according to Lonrho’s estimates it will have little positive effect on the Bond balance sheet. “Bond is technically insolvent because his holding company Dallhold and a number of the subsidiaries have net current liabilities and therefore must rely on the continuing support of their bankers,” the Lonrho dossier said.