KEY POINTS:
Key Tourism Holdings shareholder the Cushing family are yet to make up their minds about a takeover bid from Australian firm MFS Living and Leisure, despite having a seat on the board which is recommending the offer.
With a 9.5 per cent stake in Tourism Holdings, the K.D. Cushing Family Trust has almost enough shares to block the $277 million takeover bid by Queensland-based MFS Living.
MFS Living needs 90 per cent of Tourism Holdings for its full takeover bid at $2.80 a share.
The board of NZX-listed Tourism Holdings plans to recommend that shareholders accept the deal, subject to no higher offer being made and the bid being valued within a fair range by an independent appraisal report.
But Sir Selwyn Cushing - trustee of the Cushing trust - was yet to make up his mind on the offer.
"I think most people will wait, as I will, and see what happens in the fairness report which comes out shortly," Sir Selwyn said.
"It's [the offer] certainly well up on market and the trend is very good but we have time and the [Takeover] Panel's procedure really encourages you to take cognisance of all things, which of course includes the special report."
Tourism Holdings shares yesterday closed at $2.71, compared to $2.27 before news of the offer.
The offer by ASX-listed MFS Living may improve and it was possible for another bidder to enter the fray, Sir Selwyn said.
"There's always a chance but if you then say 'do you know of anybody' ... the answer is no."
Sir Selwyn's comments come as ABN Amro Craigs raised its target price for Tourism Holdings from $2.09 to $2.80 and moved its recommendation to sell.
Analyst David Oxley said generating consistently attractive returns from the company's assets had, historically, proved challenging.
"This issue, coupled with our belief that the portfolio of businesses has an above-average risk profile means we think it unlikely, though not impossible, that an alternative offer will emerge," Oxley said.
"As such, we believe investors should take advantage of the current situation and reduce holdings."
Shareholders Association chairman Bruce Sheppard said the bid held a national interest issue regarding the administration of sensitive habitats passing outside the control of New Zealand - including operations around Waitomo caves and Milford Sound.
Sir Selwyn said sensitive land should not be an issue in the deal.
"It's not the land that's possessed by Tourism Holdings, it's the use of the asset which has been developed to everybody's advantage."
Tourism Holdings chairman Keith Smith said the Overseas Investment Office would look at sensitive land issues when deciding whether to agree to the takeover.
"We have leases, we have rights to occupy these various sites and it's normal course of business," Smith said. "It's no different from the premises we lease in Auckland."
