Bond and Lonrho cannot agree

Press, 19 April 1989, Page 43

Bond and Lonrho cannot agree

NZPA-AAP London Bond Corp is to pursue “further idea and plans” for the disposal of its 20.4 per cent stake in international conglomerate Lonrho Pic. The auction deadline for the stake, for which Bond wants £377 million (SNZIOSS million), expires today with no takers in sight. Bond’s asking price is £3.85 a share, well over the £3.29 Lonrho shares last closed at. Bond Corp’s UK chief executive John Richardson said he would be '“very surprised” if a buyer emerged before the deadline. “We want to get on and sell the holding privately. There is no truth in talk that we will place the holding through the market because of the share price,” he said. He said there had been some “informal nibbles” at the stake. Mr Richardson also discounted rumours that there were Japanese or

European consortiums about to snap up the stake. He said that Bond chief executive Alan Bond had met with his opposite number at Lonrho, Tiny Rowland, on Friday to discuss a plan whereby Lonrho could buy the bulk of the holding with a minimum advance corporation tax liability. “While the meeting was very pleasant, there was nothing tangible to come out of it,” he said. “They rejected the scheme. They just said it was not that attractive now and we really cannot press them to take it.” *Mr Richardson said he was “bemused” that Lonrho and Mr Rowland, who had earlier talked about Lonrho shares being worth at least £5 and more like £B, should bypass the opportunity to buy the holding at £3.85. "The ball is in their court — made them a couple of proposals and they showed no interest.”