Take-over bid for IEL not ruled out

Press, 11 July 1989, Page 28

Take-over bid for IEL not ruled out

NZPA-AAP Sydney The Melbourne textile king, Mr Abe Goldberg, has not ruled out the possibility of a full take-over bid for Industrial Equity. Mr Goldberg, who is leading a sAust97l.3 million (SNZI.2B billion) buyout of lEL with the company’s deputy chairman, Mr Bill Loewenthal, and chief executive, Mr Rod Price, said a decision would be made “soon” on whether to go to 100 per cent of the entrepreneurial investment group. The buy-out vehicle, Corama, plans to buy 52 per cent of lEL from Brierley Investments and Goodman Fielder Wattle for Aust24oc a share. Aspects of the deal are already being questioned by the National Companies and Securities Commission and John Spalvins’s Adelaide Steamship Company, which has emerged with a key 11.61 per cent stake in lEL. Mr Goldberg, in an interview on Australian television, said he did not see the need for a full bid because lEL was merely changing one majority shareholder, BIL, for another. His view was echoed by Mr Price in a separate interview on the same television business programme. Mr Goldberg said there was no shortage-of funds for a full bid, although he declined to give further details and would not say on what basis Corama would decide to move to 100 per cent. Mr Goldberg denied reports that the United States investment house, Drexel Burnham Lambert, was financing the buy-out “at this stage” and said “maybe if we come to a full bid,” funding would be. arranged on the best terms.. Last week, -Mr Spalvins questioned whether the buyout proposal might be in breach of the Companies Code .if Corama made an agreement to buy 52 per cent without making a full takeover bid. : Under the Companies Code, a company is prohibited from buying more than 20 per cent of another without making an offer, but may be exempted under Section 12 (g) if it gains shareholder approval. However, the NCSCfts now looking at tightening}? up its policies under Section 12 (g).