KEY POINTS:
Pod Ltd's two major shareholders have entered agreements with bidder LWR Manufacturing Ltd, making it difficult for a rival plan to succeed.
Gould Holdings Ltd, with a 24.57 per cent holding, and Napoleon Trust, with a 5.78 per cent holding, have entered into lockup agreements.
Under the agreements LWR is required to make a takeover offer, which must be sent to shareholders on or before June 26, on the terms in a notice served on May 31.
The 50c a share bid is conditional on getting 90 per cent of shareholders to accept. If the LWR takeover offer fails LWR will offer to buy the company's Designer Textiles International Ltd (DTI) and Designer Manufacturing Ltd units for $8 million.
Shareholders are to meet on June 29 to consider a separate offer to buy DTI from Melbourne-based The Merino Company Pty.
In an independent report, Ferrier Hodgson valued Pod shares at between 48c and 54c and said shareholders would be better off accepting the LWR offer.
An independent committee of directors, consisting of Joanna Perry, Sharon Hunter and Murray Clarke, are now recommending against voting for The Merino Company offer.
- NZPA
