Meat magnate matches rival's Richmond move

By PAULA OLIVER

British turkey magnate Bernard Matthews raised the stakes in the battle for meat processor Richmond, laying a higher offer on the table to match a move made by its South Island opponent, PPCS.

Under the name of North Meats, a company set up to handle the Richmond takeover attempt, Bernard Matthews filed a Stock Exchange notice last night offering between $3.10 and $3.64 for up to 60 per cent of Richmond's shares.

PPCS had earlier raised its offer to between $3.10 and $3.65.

Crucial to either party winning the takeover contest is a 36 per cent stake held in Richmond by Active Equities - an investment vehicle driven by a trio of former Brierley Investments lieutenants.

The three have watched the value of their investment in Richmond soar since buying in for around $2 a share less than a year ago. They already stand to make a $24 million profit if they sell at the new offer price of $3.65, but with both potential buyers looking hungry, they may opt to hold out longer and see just how high the price will go.

North Meats' Norman McRae said last night that his company's raised offer showed its commitment to buying Richmond. "We are confident that we represent an outstanding partner for Richmond and its shareholders, and that we will make a significant value contribution as a major shareholder," he said.

Mr McRae said Bernard Matthews' marketing channel into retailers in Britain would be valuable for Richmond. He said talks with Active Equities were going "fine" and that the investors were "quite happy to talk to us."

The possibility of a joint venture was also being discussed, he said.

"Obviously if we looked at a joint venture, it would be with the major shareholders," Mr McRae said.

"There wouldn't be any point in having it with a minor. There's only one substantially major shareholder, and that's one of our options."

The other sizeable shareholders in Richmond are farmer groups Waitotara, based in Wanganui and holding about 7 per cent, and Richhold, a Hawkes Bay group formed to fight a previous PPCS move, with 9 per cent.

Clouding the takeover battle are two things outside the control of all the parties: the impending introduction of the Takeovers Code, and the Commerce Commission's investigation into PPCS' right to buy Richmond.