Vertex falls to Masthead after two-month struggle

The Stewart family finally won control of plastics packaging group Vertex yesterday amid a surge of acceptances for its $2.09-a-share offer.

After a two-month takeover saga, the family's investment firm Masthead could last night lay claim to 61 per cent of the company, up 14 per cent from Friday and well clear of its 50 per cent target.

Now assured of its ownership, Masthead director Mark Stewart said it was the end of a battle for the family that had faced boardroom hostility since buying into the company in September. The offer - which values the company at $66.9 million - will remain open until May 24.

Stewart said he was confident of winning 90 per cent acceptances which would lead to its compulsory acquisition of the remaining shares and end Vertex's short stint on the market since listing in 2002.

Shareholders have gravitated to the offer after Masthead upped its offer by 4c to $2.09 a share two weeks ago, gaining the approval of Vertex's independent directors.

This was 19c a share higher than its original offer two months earlier.

Vertex interim chairman Tony Frankham yesterday restated his recommendation that shareholders accept the offer. Although Stewart had previously indicated an intention to merge Vertex with rival company Alto Plastics, in which has a majority stake, he said yesterday there were no immediate plans to do so.

Shares in Vertex were unchanged yesterday at $2.07.