Second Vertex suitor warms up on sidelines

The Vertex tussle took another twist today with second mystery suitor preparing a more generous offer for control of the plastics company.

The independent directors of Vertex - currently subject of a $1.90 a share takeover offer from Masthead - today said they had received an approach from another party signalling it intends to make a full cash takeover offer.

Vertex's independent directors were in negotiation with the third party clarifying and agreeing pre-conditions for the offer. If these were successful, notice of a full takeover offer was likely to be given before Masthead's recently extended offer ran out on April 26.

"Present indications are that the offer price would be within the Grant Samuel valuation range." the independent directors said.

A Grant Samuel & Associates Ltd report values Vertex's shares between $2.14 and $2.39 each.

Vertex chairman Tony Frankham said the new potential bidder was a company in the industry but he would not name it or say whether it was a New Zealand company or not.

Mr Frankham said the independent directors - who today reiterated shareholders should not yet accept the Masthead offer - welcomed the additional interest.

"The thing that creates another alternative is always very useful, it creates a bit of competitive tension," Mr Frankham told National Radio.

The Grant Samuel valuation which "astonished" Masthead has now been placed on Vertex's website and will be posted to shareholders today.

Mark Stewart-led Masthead bought a 19.9 per cent stake in Vertex last year for $2.05. It now wants to buy the remaining shares in the company, with a view to merging it with rival Alto Plastics, of which it owns 40 per cent.

Masthead's offer was sparked by a board stoush between Mr Stewart and Vertex managing director Paddy Boyle.

Mr Boyle has flagged up the potential for conflict of interest on the board because Masthead is also a major shareholder in Alto Plastics, one of Vertex's rivals.

Mr Stewart planned to merge Alto and Vertex if his takeover, which is dependent on getting 90 per cent acceptances, was successful.

Vertex shares were 10c higher at 202 in early afternoon trade today.

- NZPA