Cullen to reveal plans for Bendon

By ELLEN READ

Cullen Investments will today reveal its intentions towards takeover target Bendon.

Cullen's group managing director, Phil Newland, said yesterday that an announcement would be made within 24 hours.

Three groups have expressed interest in the lingerie company - a management buyout consortium led by Bendon's managing director Hugo Venter, Pacific Retail Group (PRG), which is 73 per cent owned by a subsidiary of Eric Watson's Cullen Investments, and a third, unidentified, party.

PRG has foreshadowed a 100 per cent takeover bid for Bendon Group at $1.90 a share. The company, which already holds 19.05 per cent of Bendon Group, has issued a notice of takeover but has not yet made a formal offer.

Mr Venter, in association with AMP Global Investors, has formally offered $38.5 million for a management buyout of the group's operating subsidiary, Bendon Ltd.

The net value to shareholders of this offer is approximately $1.81 a share and it would also return around $17.5 million of cash assets held by Bendon Group to shareholders.

The third party, rumoured to include Australian businessman Solomon Lew, has completed due diligence but has not indicated if an offer will be made.

Last week, an independent assessment of the lingerie business by Grant Samuel and Associates valued Bendon Group at between $1.94 and $2.19 a share.

Bendon shares fell 4c yesterday to close at $1.86.