Court stay on PPCS penalties

By IRENE CHAPPLE

PPCS and its takeover target, rival meat company Richmond, have added another twist to the saga.

Yesterday the two companies said the High Court had agreed to postpone penalties handed down to PPCS in November.

The penalties - that PPCS forfeit a portion of its shares in Richmond and lose voting rights on the remaining ones - have been stayed until after the Court of Appeal decision on the bid.

This month the takeover offer was extended for an eighth time, leading analysts to muse that PPCS' efforts were futile.

Richmond chairman Sam Robinson said yesterday that the stay on penalties was on the condition that PPCS stopped extending the takeover offer.

Based on PPCS' present shareholding:

* If the High Court decision is affirmed, PPCS will hold 34 per cent of the voting shares in Richmond.

* If PPCS successfully overturns the cancellation of the voting rights, it will hold 63 per cent of Richmond's voting shares.

* If the court also overturns the order to forfeit shares, PPCS will hold 69 per cent of the voting rights in Richmond.

The protracted takeover bid will now close - truly - on May 23.