PRG sticks by Bendon price, extends offer

By Phil Boeyen, ShareChat Business News Editor

Monday 25th February 2002

Pacific Retail Group (NZSE: PRG) says it will not be increasing its $1.90 offer for Bendon Group (NZSE: BEN) but has extended the closing date from March 11 until March 26.

The announcement means that, at least in the meantime, the retail group has decided not to compete on a price with the rival AMP/Venter consortium, which has increased its bid for the lingerie trading business of Bendon from $1.81 to up to $1.99 per share.

The battle for Bendon heated up last week after PRG raised concerns that Bendon's senior management might be focusing more on the management buyout than the day-to-day running of the business.

However Bendon boss Hugo Venter refuted the criticism and noted that, as a potential buyer, management has a vested interest in ensuring the business is as healthy as possible.

PRG chief executive, Peter Halkett, says his company decided to extend its offer to "give shareholders more time to consider our offer, take advice and make up their own minds".

"Bendon shareholders have not yet received all the information that they need to make an informed decision in that the Bendon board has not yet issued its target company statement nor its recommendation. We believe these are to be available tomorrow."

A current sticking point is the ability for shareholders to make a comparison between the offers. PRG's price is for the entire company but the consortium price is only for the trading business, Bendon Limited.

It's also likely that any shareholder vote to accept the consortium bid would fail because it needs 75% acceptance and PRG currently holds around 20% of Bendon votes.

The Bendon board has previously said it preferred offers for the entire group but that it was continuing to work with the consortium bidders.

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