Early W&K result for Wrightson

Wrightson has completed its full takeover of rival rural services company Williams & Kettle with two days to spare.

The company yesterday advised the stock exchange that more than 90 per cent of shareholders had accepted its offer of $4.60 a share. It can now acquire the outstanding 10 per cent on a compulsory basis. The offer was due to close tomorrow..

Wrightson, now majority owned by the Craig Norgate-led Rural Portfolio Investments, launched its bid last month.

Norgate said the clear result meant management could get on with the merger and provide staff with some certainty about their place in the new, enlarged company.

Allied Farmers' share price continues to rise on speculation that Wrightson's rural services rival, Pyne Gould Guinness, may be planning some takeover action of its own.

PGG, in partnership with Fonterra's RD1, sparked the consolidation in the sector when it made a takeover bid for Williams & Kettle.

That bid was trumped by Wrightson, but many investors remain convinced that PGG and Fonterra will make another move.

Allied shares have jumped 20 per cent in the past two days and hit a record high of $3 yesterday before dropping back to close at $2.90.

That follows a steady rise from $1.95 a share before the December 10 shoot-out between PGG and Wrightson.

Shaking it up

* Wrightson has completed its takeover of Williams & Kettle with two days to spare.
* Speculation is mounting that Wrightson rival Pyne Gould Guinness will respond by making a takeover play for Taranaki-based Allied Farmers.