By LIAM DANN
Sir Selwyn Cushing's investment company, H&G, has raised its takeover offer for Rural Equities by 10c - to $1.60 - despite having already received acceptances giving it control of 50.01 per cent.
The H&G offer now matches a price offered by rival bidder St Laurence Equities.
H&G, which Cushing owns
with his son David, originally offered $1.25 a share before upping that to $1.50 following the St Laurence bid.
St Laurence is standing in the market for 19.9 per cent but has indicated it might revisit an earlier bid for 100 per cent if the H&G bid is rejected.
Cushing yesterday confirmed that the company had more than enough acceptances to take control. He said shareholders had been so supportive that matching the other offer was the proper thing to do.
Since the offer was raised to $1.60 those acceptances had been flooding in, Cushing said.
H&G already held a 25 per cent stake in Rural Equities after it was spun out of Williams & Kettle in February. Cushing family interests control another 9.27 per cent.
Because H&G needs to take its stake to only about 41 per cent to get control, the Takeovers Panel ruled the offer must be approved by a majority of Rural Equities shareholders. That ballot closes on July 8.
St Laurence Equities manager John Mallon said the new H&G offer was inconsistent with statements it had made in the last few days. St Laurence is urging rejection of H&G's offer.
Competing bids
* St Laurence Equities is offering $1.60 a share for 19.9 per cent of Rural Equities. It now holds just over 10 per cent.
* Sir Selwyn Cushing's H&G Holdings originally offered $1.25 a share for majority control of Rural Equities. It has since raised that to $1.60.
* Cushing and son David are directors of Rural Equities.
* Cushing interests own about 35 per cent of the company.
* Rural Equities is the fund manager for Rural Property Trust (RPT), of which it owns 31.9 per cent.
