Richmond hedges its bets

By PHILIPPA STEVENSON

Richmond yesterday moved to clarify its knotty takeover position but fell short of encouraging shareholders to take the offer urged by bidder PPCS.

In a letter to shareholders, Richmond chairman Sam Robinson stressed that his board's majority recommendation to shareholders to accept PPCS' offer was conditional on no other bid appearing.

He advised shareholders against making a rushed decision and said those who waited retained the choice should another offer materialise.

It hardly seemed the tone urged by PPCS chairman Jim Pringle after the Takeovers Panel at the weekend cleared PPCS' $3.05 a share offer.

Pringle said the way was now open for the Richmond board to encourage shareholders to take the offer promptly.

If the Richmond board was aware of other potential offers it should make "all relevant facts known promptly", Pringle said.

Robinson said: "Future delays, procrastinations and a prolonged offer process are not in anyone's interest." His letter was prompted by the panel's reminder to directors of their obligations to make the consequences of PPCS' minimum acceptance condition clear.

Richmond has 40.9 million shares, but only 34.2 million are involved in the bid after 6.8 million controlled by PPCS were ruled out of play by Justice William Young in the High Court in November.

Robinson said the panel's ruling and Takeovers Code provisions meant if PPCS did not receive 17.51 million acceptances of its offer it would, on February 28, lose the voting rights on its other 14.61 million shares - another of the penalties handed out by Justice Young for PPCS' failure to disclose to Richmond and the Stock Exchange its relevant interests in Richmond shares dating back to 1998.

"Your acceptance is irrevocable - once mailed to PPCS, you cannot withdraw it," Robinson told shareholders.

Richmond shares closed at $2.98 yesterday after 156,000 changed hands during the day.