Feltex terms down to final details

Feltex expects to finalise the terms of a takeover offer from Australia's Godfrey Hirst within days.

It said yesterday that Godfrey Hirst - which has offered $141.8 million for the business - had largely finished going over its books and was now tidying up details of the proposal to be put before shareholders.

"They are hoping to conclude that in the next few days," a spokesman said.

He added Graeme and Craig Turner - part of the wealthy Sleepyhead bedware dynasty now fronting a potential rival offer - had also largely completed their due diligence.

"The ball is in their court. They now have to decide what they are going to do with the information they have gathered through due diligence," the spokesman said.

Feltex's shares yesterday rose 0.2c to 12.2c well off its 2004 float price of $1.70.

A deal with Godfrey Hirst will create one of the largest transtasman carpet groups, with $750 million of sales, an estimated 50 per cent share of wool and synthetic carpets in Australia and 50 per cent of the wool carpet market here. It is subject to the support of 75 per cent of shareholders.

A vote will be held at a special meeting this month

Meanwhile, the Green Party said yesterday a Securities Commission investigation into the float Feltex was "unsatisfactory ". The commission said last week Feltex did not breach securities law with its 2004 float prospectus. It is still investigating whether the company kept investors adequately informed about its problems.