Shares in lingerie maker Bendon Group yesterday rose to their highest level in almost two months after Monday night's announcement of a second takeover bid for the company's operating subsidiary.
Shares rose 7c to $1.85.
Forsyth Barr research head Rob Mercer said the rival bid was positive for Bendonshareholders.
He said the earlier management buyout offer was priced "right at the bottom end of a fair value range".
Management was set to gain the main benefits from the deal, leaving shareholders with the messy job of winding up the company, which could take a year.
Directors say the new bid, by an undisclosed party, is for an amount similar to the $38.5 million bid lodged in November by a consortium headed by Bendon Group managing director Hugo Venter, with the support of 26 per cent shareholder AMP Henderson.
Mr Venter said yesterday that he was surprised it took so long for a rival bidder to emerge.
"I'd have been extremely surprised if no other bidder had emerged. This is a very good company."
Neither Mr Venter nor Mr Mercer was prepared to speculate on the new bidder's identity.
But market speculation is about an Australian competitor which showed interest in Bendon before Christmas.
Directors said the identity of the new bidder would probably be disclosed if and when its offer became binding.
Mr Venter said he was concerned that a competitor might exploit the due diligence process to Bendon's detriment.
"If it is a competitor, one must make sure it's a serious interest, not just a look-see."
Directors say they will require the new bidder, and any other interested parties, to submit binding offers by February 1.
Directors expect to recommend a preferred buyer to shareholders next month.
A Grant Samuel report for the board on the Venter/AMP bid is due at the end of this month.
Shareholders are expected to decide the company's future in March.
The bids are only for the operating subsidiary, not the cash assets, of the parent company, which has about $17.5 million cash remaining from last year's sale of another subsidiary, NZ China Clays.
