Mainfreight gets hostile over the books

By PAM GRAHAM

Mainfreight is calling in the regulators after its request for more information from takeover target Owens Group was rebuffed yesterday.

It has extended its bid for Owens while it tries to get more information on how Owens is trading without its Hirepool business. Mainfreight also wants to know where the gains from the sale are.

Owens said it was not providing more information. Mainfreight had chosen a hostile bid which meant it could not see the books.

Mainfreight is offering $1.03 a share in cash, conditional on getting all of the company.

The price has been rejected by the board and was not supported by a report from Deloitte Corporate Finance which said the shares were worth between $1.09 and $1.27.

Mainfreight is now referring the matter of disclosure to the Takeovers Panel and the stock exchange's Market Surveillance Panel.

"Owens will not allow itself to be hamstrung indefinitely by the terms attaching to the Mainfreight offer, which include a number of constraints on the company's restructuring and expansion, including the acquisition of other businesses," deputy chairman Denham Shale said.