Hart extends deadline for Burns Philp

Graeme Hart has been forced to extend the deadline on his bid for 100 per cent of his Australian investment vehicle, Burns Philp.

The offer of A$1.10 a share - for the 43 per cent of Burns Philp he does not already own - has been open since September 7 but has so far received acceptances from just 12 per cent of shareholders.

The bid was due to close next Monday but has been extended to October 20.

Despite the delay, a source close to Hart's team said the takeover was unlikely to drag on for months like his earlier bid for Carter Holt Harvey.

Hart extended the deadline on his CHH offer six times before finally getting control in March.

The Hart team is understood to be comfortable with the number of acceptances it has received so far and is highlighting the time it took for the Burns Philp bid to get regulatory approval as the main reason for the extension.

Regulatory approval by the Australian Foreign Investment Review Board and New Zealand Overseas Investment Office was the only condition on the offer. It came through late last week.

The source said it was always unlikely that any of the big financial institutions would sell into the offer until that condition had been met. On that basis, 12 per cent was a good level of acceptances at this stage.

Some big differences existed between Burns Philp and CHH. The timber company had shareholders who wanted it to remain listed so they could take part in the rationalisation and turnaround Hart was expected to achieve.

Launching the bid on August 22, Hart said the value of Burns Philp was transparent and independent adviser Grant Samuel has already declared the offer "fair and reasonable". Its report valued Burns Philp shares at between A$1.084 and A$1.105.

Burns Philp's share price remained unchanged yesterday at A$1.10.