BIL move came as no surprise

Press, 25 January 1986, Page 21

BIL move came as no surprise

Dingwall and Paulger, Ltd, the Christchurch grocery merchant was aware of the interest that Brierley Investments, Ltd, had in the company, said Dingwall’s chief executive, Mr Morris Paulger yesterday. Brierley Investments announced yesterday that it had obtained a 13.4 per cent stake in Dingwall and Paulger. Mr Paulger said that the directors had been> aware of Brierley’s interest for some time. However, this had not prompted the buy-out move of 310 c a share by Orange Peel Investments, a subsidiary of Southern Cross Holdings, Ltd, which owns 50.1 per cent of Dingwall and Paulger’s shares. “A lot of other people were also interested in the company,” said Mr Paulger, who is also a director of Southern Cross Holdings. The news that,Brierley

had such a stake meant that Orange Peel Investments would not get as many shares, that is all, said Mr Paulger. Orange Peel would not buy Brierley’s holding at a higher price — “Mr Brierley can’t beat us that way.” Orange Peel’s offer had only been ■ mailed- to Dingwall and Paulger shareholders on Wednesday, so it was too early to say’.' what the reaction to the take-over bid was. - . Brierley told the Stock Exchange yesterday it had bought by private treaty and on-market transactions 170,000 Dingwall and Paulger shares, representing 8.5 per cent of the capital. The consideration was $550,500. The shares were bought at prices ranging from 310 c to 325 c and increased BlL’s stake to 13.4 per cent of the issued capital. Earlier this month

Egden Wignall and Company, the Christchurch broker, stood in the market for 5 per cent of Dingwall and Paulger shares at 315 c for an unnamed client. The Orange Peel’s offer remains open until February 21. _