A member of the family that founded Australia's Crane Group is campaigning to stop its takeover by New Zealand's Fletcher Building, saying the deal is bad for both businesses.
Peter Crane posted a video on YouTube, seated on a brick wall outside a Tradelink store defending Crane as
"a great Australian company" and he posted extensive written views with documents and charts on his website.
The fifth-generation descendant and last member of the Crane family to work at the building and industrial products business wants fellow shareholders to reject Fletcher's A$797 million ($1046 million) bid, upped from December's A$740 million offer, in the deal which needs regulatory approval and closes on February 25.
Peter Crane owns 1 to 2 per cent of the ASX-listed Crane and his YouTube plea was viewed by 288 people as of yesterday afternoon. His website includes a document rejecting Fletcher's offer which can be downloaded.
But Philip King, Fletcher's investor relations manger in Auckland, dismissed Crane's arguments, saying his points were not robust and his video was hardly riveting viewing.
"He's got a real bee in his bonnet," King said this week, saying Peter Crane had initially backed the offer.
Crane Group's board has backed the takeover offer.
Peter Crane's website said the deal was bad for both businesses and Fletcher was taking high risks. He said Crane was a "proud Australian business" which he did not want to see delisted from the ASX because it had inherent value to the shareholders.
"The offer has not taken into account the dominant position of Bunnings and the new player, Woolworths/Danks in the Australian building supply market. Distribution channel conflicts for the combined group may see a loss of independent merchants [non Tradelink] electing not to stock or distribute Fletcher products," he said, also citing potential manufacturing conflicts in making and selling plastic pipe in New Zealand, referring to regulatory regulatory concerns.
The Commerce Commission is due to rule on this issue by February 24.
Peter Crane said Australia's larger market had developed more specialised distribution chains and Fletcher's takeover would jeopardise Crane's strengths.
CRANE'S BEEF
* Wants Crane to stay Aussie.
* Sees competition issues.
* Criticised PlaceMakers model.
* Decries ASX delisting.
* Says Australians will lose.
Peter Crane in his YouTube video appealing against the takeover bid. Photo / Supplied
A member of the family that founded Australia's Crane Group is campaigning to stop its takeover by New Zealand's Fletcher Building, saying the deal is bad for both businesses.
Peter Crane posted a video on YouTube, seated on a brick wall outside a Tradelink store defending Crane as
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