Tourism bidder works to get small investors on board

Tourism Holdings bidder MFS Living and Leisure said yesterday it would pay handling fees for shareholders accepting its $2.80 per share offer.

The handling fees would compensate trading participants for providing advice to retail clients. MFS said it wanted to ensure smaller investors were fully informed and had every opportunity to participate in the offer.

The Australian company has received acceptances for 16.66 per cent of THL, it said on Monday. The offer, which closes on July 21, is conditional on reaching 90 per cent.

US investment fund Sterling Grace Capital Management with 16.96 per cent and AXA with 12.2 per cent have blocking stakes.

Shares in THL closed down 6c yesterday at $2.64.

- NZPA