Brothers seek quick decision on Feltex

The Auckland businessmen seeking to keep Feltex listed on the NZX want to put a proposal before the troubled carpet-maker's shareholders by the start of next month.

Graeme and Craig Turner, part of the dynasty behind the Sleepyhead bedding group, said they wanted to decide quickly whether to make a formal bid.

"Feltex shareholders and staff have faced enough uncertainty and we will be looking to circulate our detailed proposal in late August or early September setting out the future we see for Feltex with their support," Craig Turner said.

They made the comments as Feltex confirmed it had opened its books to the Turners, enabling them to assess the viability of their proposed bid.

The development lifted Feltex's shares 1c to 12c, the limit on the payout to shareholders of a rival $141.8 million takeover offer from Australia's Godfrey Hirst. Under the Godfrey Hirst proposal, Feltex shareholders will be paid up to 12c - well short of its $1.70-a-share 2004 float price - and the company delisted from the NZX.

"We are working to have due diligence completed as close to August 21 as possible. During this time we will be finalising the terms of our proposal with the board as well as working with other parties around this deal," Turner said.

The Turners will start work on the books at the Feltex offices in Melbourne.

"Due diligence will enable a full analysis of the Feltex situation to be made in order to confirm our understanding of the company's position and determine the final details of the bid," Turner said.

The Turners have been overwhelmed by support from shareholders and members of the public who wanted to see Feltex stay in Kiwi hands and returned to profitability.

"Feltex is an iconic Kiwi brand, like Sleepyhead. The business itself is a good one and we want to stop another 'fire sale' of a New Zealand company," Turner said.

Feltex continues to advance its agreement with Godfrey Hirst, which is expected to complete due diligence this month.

Meanwhile, Godfrey Hirst said yesterday the emergence of a rival bid would create unnecessary uncertainty for employees and other stakeholders.

"We have said all along that our offer is fair, fully funded and fully priced," finance director Jim Walsh said.


SLEEPYHEAD

* Owned by the wealthy Turner family, which says the NBR Richlist is worth $70 million.

* Based in Otahuhu in south Auckland.

* Operated by the Turner brothers, Graeme and Craig.

* Operations in Auckland, Christchurch, Brisbane and Melbourne.

* Sales of about $130 million.

* Employs around 600 staff.


FELTEX

* Publicly listed company

* Largest shareholders: Clients of Forsyth Barr and First NZ Capital, the investment banks that floated the company in 2004 at $1.70 a share; followed by South Island businessman Allan Hubbard.

* Head office: Melbourne, Victoria.

* The 2nd largest carpet-maker in Australasia after Godfrey Hirst.

* Chairman Tim Saunders, chief executive Peter Thomas.

* Sales: $266 million (est).

* 820 employees in New Zealand, 520 in Australia.


GODFREY HIRST

* Owned by the McKendrick family.

* Based in south Geelong, Victoria.

* The largest carpet-maker in Australasia.

* Chairman and chief executive Rudyard (Kim) McKendrick, whose father's company, Kensington Carpets, was swallowed by Feltex.

* 510 employees in New Zealand, 853 in Australia.