Slow progress for Vertex takeover bid

Support is slow in coming for the Stewart family's ambitions for plastics packaging group Vertex.

Fifty days on from launching its $49 million takeover bid for the company, the family's investment firm Masthead has had a 1 per cent acceptance of its $1.90 a share offer. The company's stake now sits at 21 per cent.

Masthead is required to report acceptances in steps of 1 per cent of Vertex's share capital.

The offer has been extended to May 10 and the firm has until Friday to alter or extend the offer by another 15 days. It could do this twice more before the offer's final closing on June 23.

First NZ Capital analyst Dwane Clark said shareholders were likely to keep sitting on their shares as there were no clear advantages from accepting early.

Shares in the company closed at $1.86 last night, having ranged between $1.60 and $2.07 since Masthead made its offer. Vertex independent directors are recommending shareholders do not accept the bid, which falls below the $2.14 and $2.39 price range given by independent valuers Grant Samuel.

One counter-bidder has come and gone since Masthead launched its takeover offer on March 1.

The mystery suitor was tipped to be preparing a cash offer within the valuation range. Speculation was that interest had come from Australian Visy, which has revenues of more than A$2.8 billion ($3 billion) and about 8000 employees.

The unnamed bidder pulled out 10 days ago after finding similarities between the two businesses were not as strong as it first thought. Masthead paid George Gould $2.05 a share last September for its initial 19.9 per cent stake in Vertex.

Masthead has said it plans to merge the firm with Alto Plastics.