BAT gets full backing

Press, 21 October 1989, Page 36

BAT gets full backing

NZPA-PA London BAT shareholders gave 99.9 per cent backing to plans put forward by their board aimed at seeing off the unwelcome bid by Sir James Goldsmith’s Hoylake. About 500 shareholders packed into a room in BAT’s Millbank offices in London. Many were left standing at the back or moved into an overspill area.

The proposals involve spinning off BAT’s Argos catalogue showrooms and Wiggins Teape and Appleton paper businesses, and the sale of United States retail interests, including Saks Fifth Avenue. Shareholders were also asked to approve the buyback of 10 per cent of the company’s shares.

All but one hand was raised in favour. Added to the proxies received representing 560 million shares, the board’s support was 99.9 per cent. Hoylake’s record £13.4 billion ($35.978) bid has been stalled while approval for the sale of the United States Farmers insurance business does the rounds of United States courts. Sir James and his backers, Messrs Kerry Packer and Jacob Rothschild, could still come back with a renewed bid. Most shareholders at yesterday’s meeting spoke in support of BAT, while only a handful questioned the board’s wisdom. The chairman, Mr Patrick Sheehy, said his board was able to take these initiatives “from a position of great strength,” with forecast pre-tax profits for the year of £2B ($5.378), up 22%. So far, only 0.05% of shareholders have backed the Hoylake bid. Ironically, Sir James has welcomed the BAT board’s plan, arguing that it supports his case for breaking up the company. Hoylake already holds 1.9% of BAT shares and yesterday voted for the restructuring proposals.