Offer for Vertex being finalised

Vertex was making progress with the mystery bidder planning a takeover of the embattled plastics company, interim chairman Tony Frankham said yesterday.

Pre-conditions for the bid were still being negotiated and he was confident the offer would be formalised this week.

"Things are moving ahead but we're not quite there yet," he said.

His comments came as Vertex released its target company statement advising shareholders against accepting the $49 million takeover offer by the Christchurch-based Stewart family.

The Stewarts, through their investment company Masthead, own 19.9 per cent of Vertex and are offering $1.90 a share for the rest.

The price is below the $2.14 and $2.39 price range for Vertex shares released by valuation firm Grant Samuels last week.

The identity of the surprise suitor who emerged on the eve of Easter is still a mystery.

On Thursday, Frankham said the rival bidder was an industry player but gave no more details.

He tipped the rival offer to fall within the Grant Samuels range

First New Zealand Capital analyst Dwane Clark has identified four Australian companies, one European company and one US company as potential bidders.

He believed the most likely among them to be Melbourne-based international packaging company Amcor and packaging and recycling company Visy Industries, which could both "easily digest" Vertex.

Another analyst said he would not be surprised if it was one of the two.

Vertex shares rose 3c yesterday to close at $2.05.

On the prowl

* Six overseas companies are seen as possible bidders.
* Australian-based Amcor and Visy Industries are the front runners.