Forum Archive Index - May 2004

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Karyn,

>
> Norgate outlines aims of takeover
> 
> 21.05.2004
> By LIAM DANN and NZPA
> Rural Portfolio Investments wants to make its takeover target, rural
> services firm Wrightson, an international player.
> 
> Managing director Craig Norgate told about 20 brokers and Wrightson
> shareholders in Dunedin that New Zealand needed but did not have
> international-class farm input companies.
> 
> "We would like to think Wrightson will be one of them, but we have got
> to get its core business performing before we can start playing in
> those sandpits," Norgate said.
> 

Thanks, that is interesting.  I wonder if there was some truth in the item 
doing the rounds in the media a while ago about some triple tie up 
between the Warehouse, an Aussie farm supplies retailer and 
Wrightsons then?

I know you made disparaging remarks about NZ companies' ability to 
cut it in the Oz market Karyn.   But WRI are alraeady there and 
profitable with an arm of their seed business.  So I think it is a little 
premature to lump them in with others who haven't made it.

I also noticed this item by Brian Gaynor (didn't realise he was a WRI 
shareholder) in the weekend Herald.    I thought Gaynor's comments 
on the possibility of success of partial bids 

"Shareholders either believe that the bidder will add value to the target 
company, in which case they reject the offer,"

(better to hold onto the shares if you think Norgate will make a positive 
difference)

"or they don't like the offeror. In the latter situation they will also reject 
the bid because they don't want to remain a shareholder in a company 
that is controlled by a party that is unacceptable to them."

"This suggests that parties who make a partial bid may have to make 
particularly attractive offers to be successful. In view of this, neither the 
Wrightson nor Tenon bids are likely to succeed, because they are 
below the independent valuations."

It is compelling logic I think.

SNOOPY






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