Allied hones in on Prime target

Allied launched the $2.80 per share full takeover bid last month after entering a conditional lock-up agreement to buy 60.09%.

Today's substantial shareholder declaration, the second this week, shows it has increased that holding by 11.99% in the past fortnight.

Under New Zealand takeover rules, a company acquiring more than 50.01% must make the same offer to all shareholders.

Independent adviser Horwath Porter Wigglesworth Ltd last week said Allied's offer of $2.80 per share was "fair market value", with Prime's shares valued at between $2.44 and $2.88 per share.

Prime's directors have unanimously recommended shareholders accept the offer, which values the company at $15.6 million.

Shares in Allied last traded on Monday at $2.40 against a year high of $2.94 and a low of $2.00.

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