Paper firm in bid for printer

Press, 6 September 1989, Page 43

Paper firm in bid for printer

NZPA-AFP London The British paper and packaging group Bowater has announced a £382 million ($1,004M) takeover bid for the specialist printing company Norton Opax, which makes cheque books, plastic cards and lottery tickets. Analysts said the bid appeared aimed at squashing a £4B4M ($1,272M) hostile bid which Norton Opax made last month for De La Rue, another British printer. Bowater holds 25.9 per cent of Norton Opax’s ordinary shares and 24.3% of its convertible preference shares, a holding which would be heavily diluted if the bid for De La Rue were to succeed. There was no immediate reaction to the bid from Norton Opax. The company’s stock rose 28p to 219 in late morning trading, while shares in De La Rue dropped 21p to 350.

The mixed shares-and-cash deal proposed by Bowater priced Norton Opax’s ordinary stock at 228.75 p and its convertible preference shares at 121.2 p. The offer also gives Norton’s shareholders the option of a straight cash payment of 225 p per ordinary and 119.25 p per preference share.

Bowater said its offer was final, and was conditional on Norton Opax’s shareholders rejecting the bid for De La Rue. The shareholders are due to meet on September 15. Acceptance of the deal would allow them to acquire a total of 12.4% of Bowater’s capital.

Bowater also announced pre-tax earnings of £36.8M ($96.69M) for the first six months of this year, an increase of more than 20 per cent on the equivalent figure for last year.