TREAD LIGHTLY

Finweek English Edition - - INVESTMENT -

So Bid­vest and the PIC sent “sep­a­rate but vir­tu­ally iden­ti­cal letters” to the Adock In­gram* board de­mand­ing the res­ig­na­tion of the chair­man and the adding of four di­rec­tors to the board (in­clud­ing Brian Joffe). That all makes sense, but here’s what I have been won­der­ing about: are Bid­vest and the PIC act­ing to­gether in con­cert? They have some 55% of Ad­cock shares and do we not have an ef­fec­tive change of con­trol? The Takeover Reg­u­la­tor says no, it needs to be a sin­gle en­tity, but as I un­der­stand it the Com­pe­ti­tion Act says yes. So which is it? At face value it is the Takeover Reg­u­la­tor that con­trols this is­sue, but one cer­tainly can­not dis­miss the com­pe­ti­tion author­ity. I think Bid­vest and the PIC need to move care­fully as the im­pli­ca­tion of a change of con­trol is a re­quired of­fer to mi­nor­ity share­hold­ers at the price that Bid­vest and the PIC paid.

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