Vertex shares failed to match Masthead's takeover bid yesterday as analysts debated whether the bid would succeed.
Shares in the company leaped 28c or 17.5 per cent to close at $1.88 last night, just shy of Masthead Equities $1.90 takeover bid.
One analyst said he did not think the bid
by Masthead - an investment vehicle for the Stewart family who previously owned listed electronics company PDL Holdings - would succeed. It had paid $2.05 for a 19.9 per cent stake in September, but was now offering far less.
"Now they want full control of the company, but they're paying less ... It doesn't seem to stack up and that will be an issue the independent appraisal report will address.
"It's a good initial bid, but having said that it provides an opportunity for shareholders to get out at a price close to the IPO price at $2.05."
He said the possibility of an alternative bid could not be ruled out ... but with Masthead controlling 20 per cent already they would have to be persuaded to sell.
Another analyst said the $1.90 bid had "potential".
"If [Christchurch investor] George [Gould] was prepared to walk away at $2.05, should other shareholders say $1.90 is reasonable?"
He thought it could be seen as reasonable given Gould's stake included a premium for control.
Masthead launched its bid on Tuesday. The offer was at a 19 per cent premium to Vertex's $1.60 closing price on the day and values the company at $61 million. Director Mark Stewart said the bid was the only way to turn around what had so far been a "disastrous" investment by his family in the company.
Masthead bought its 19.9 per cent stake from Gould for $2.05 a share in September. From that point, the board disintegrated into acrimony.
Managing director Paddy Boyle and independent director Sandy Maier publicly objected to Masthead appointees Mark Stewart and Warwick Webb, claiming a conflict of interest.
They said Masthead's aim was to merge Vertex with Masthead's 51.2 per cent-owned rival firm Alto Plastics.
One analyst said given both were plastics moulding companies, he'd be surprised if there wasn't a conflict.
- additional reporting NZPA
