GPG targets luxury goods firm

By Phil Boeyen, ShareChat Business News Editor

Thursday 29th March 2001

British luxury watch and handbags company, Time Products, is advising shareholders not to take any action following GPG's tender for another chunk of the business.

Guinness Peat Group (NZSE: GPG) is offering a maximum price of £1.50 for 11.8% of the company to add to its 18.1% stake.

GPG says the maximum price represents a premium of 6% over the mid-market price of ordinary shares in Time Products at close of business on March 26th. The tender offer is open until the end of next week.

However the board of Time Products says it is continuing to review the group's strategic options, including a recent approach from management to acquire the company at a price per share in excess of the maximum tender price offered by GPG.

"This approach may or may not lead to an offer for the entire issued share capital of the company. The independent directors of the company advise shareholders to take no action at this time," Time Products says in a statement.

The company says it plans an announcement as soon as possible but it is unlikely to be made before the closing date of GPG's tender offer.

Time Products distributes and retails a number of luxury branded watches and also manufactures, distributes and retails handbags.

It operates in the UK, Europe and North America and in the year to January 2000 reported pre-tax profits of £8.5 million on sales of £64.4 million.

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