Takeovers Panel says Rank bid for CHH may not comply

The Takeovers Panel said today Rank's new bid for Carter Holt Harvey may not comply with the Takeovers Code.

The panel said it was concerned that the offer price of $2.75/share would only be available if enough shareholders accepted the offer within seven working days to get Rank over the 90 per cent threshold. Rank currently holds 85.7 per cent.

If the time limit is not met, the bid reduces to $2.70/share.

"The panel considers that the terms of Rank's proposed offer may not comply with the requirement in the code that an offer be open for 30 days.

"The limiting terms of the proposed offer in respect of the full offer price of $2.75 have the effect of shortening the offer period for an offer at that full price from 30 days to seven business days," the panel said.

The panel will hold a meeting on Monday to determine the bid complies.

Rank was not immediately available to comment.

The bid is due to be mailed on Friday, February 17 and the seven working day deadline is February 28.

- NZPA