KEY POINTS:
Australian company MFS Living & Leisure yesterday reiterated that it would not raise its takeover offer for Tourism Holdings - but said there was nothing to legally prevent it from doing so.
MFS chief executive Marshall Vann said his company had already increased its offer when negotiating with the Tourism Holdings board, which is recommending shareholders accept.
"The THL board did a very good job of getting the offer to $2.80 before it got to market," he said. "It's probably 20c higher than we started at.
"That's why we're not moving. The negotiation was done by the board on behalf of shareholders."
So far MFS has acquired just 22.3 per cent of Tourism Holdings shares - well short of the 90 per cent it is seeking to compulsorily acquire the entire company.
Vann was responding to a request from Tourism Holdings chairman Keith Smith to clariry whether it would raise its $2.80 a share takeover bid for Tourism Holdings or extend the July 21 closing date.
Smith said there had been confusion among shareholders over whether the MFS statement that it would not change its offer was covered by Australian rules which stated that once an acquirer said it would not increase or alter its takeover bid, that statement is legally binding.
In New Zealand, a bid can be altered even if the acquirer has indicated the contrary.
Vann - who has twice previously said the bid would not be altered - said the Australian rules did not apply. "It's a takeover in New Zealand so it's subject to New Zealand takeover legislation so we're still stuck in this spot where we keep saying this is what we intend to do."He said the offer would not be altered. "I can't be any clearer."
Shares in Tourism Holdings closed up 3c at $2.55.
