Bidding warms up for meat processor

By JIM EAGLES

The financial heat is being turned up in the battle for control of New Zealand's largest meat processor.

In the battle for Richmond, first one side and then the other yesterday increased the price they were prepared to pay for control of the company.

South Island-based co-operative PPCS started the bidding war last week with a restricted transfer notice.

It said it was willing to pay between $2.70 and $3.24 a share for up to 60 per cent of the company.

Five days later, British meat magnate Bernard Matthews entered the fray, through his New Zealand subsidiary North Meats, with a notice matching the PPCS offer.

But yesterday North Meats upped the ante by advising that it was increasing its price range to between $2.95 and $3.51 a share.

North Meats director Norman McRae also said the company would consider a joint venture with existing shareholders as an alternative to a simple cash purchase of shares.

Right on market closure, PPCS cranked the price up even further to between $3.10 and $3.65 a share.

PPCS has a lead in the race because it holds 16 per cent of Richmond shares and is already able to proceed with its latest offer.

North Meats cannot start buying until tomorrow.

The key to Richmond's future lies with a 36 per cent parcel of shares, which PPCS was forced to divest after it was found to have breached company rules.

Those shares are now held by Active Equities, a company founded by former Brierley Investment heads.

That company has yet to announce its intention.

It acquired the shares for about $2 each, and therefore is already looking at a profit of about $20 million.