Jun 2007 Financial News

BS&T shareholders win injunction

Jun 28, 2007

TWO minority shareholders of Barbados Shipping and Trading (BS&T) were yesterday granted an injunction which stopped a scheduled meeting of the company that was meant to approve a merger with Neal & Massy.

Sources in Barbados said the injunction was brought by BS&T shareholders Geoffrey Kinch and Michael Hoyos.

“It was the same suit brought by two different shareholders,” a journalist in Barbados, who attended court said.

One of the grounds of the injunction was for more disclosure and the other ground was to stop the vote from taking place as the shareholders did not feel that they had enough time to consider the alternative offer.

The meeting was scheduled more than a month ago in order to allow BS&T shareholders to vote on a proposal by Neal & Massy that the two companies should merge.

Under that proposal, BS&T shareholders would receive 2.75 shares in the merged company for every share they held in BS&T.

On Friday, the region’s largest conglomerate ANSA McAL said that it intended to make a rival offer for BS&T.

While Neal & Massy offer was for a share swap, ANSA McAL proposes to make a cash offer to BS&T shareholders of Bds$7.

In a statement late Tuesday, ANSA McAL said that its cash offer was 33 per cent better than the Neal & Massy offer and 27 per cent more than the Bds$5.51 trading price of BS&T shares on the Barbados market.

Contacted for comment in Barbados yesterday, David Inglefield, president/CEO of ANSA McAL Barbados said that the injunctions give the group the opportunity to present its offer to the BS&T shareholders on or before July 16.

“We are happy that the BS&T shareholders agree that the ANSA McAL offer is worthy of their consideration and that they should have the time to consider it,” said Inglefield.

A statement from the BS&T yesterday said the company’s directors were “disappointed at this turn of events,” especially as the board had agreed, at a meeting on Tuesday, to facilitate an adjournment of yesterday’s, meeting to allow shareholders to consider alternate offers.

Meanwhile, Neal & Massy chairman Arthur Lok Jack was quoted in both Barbados daily newspapers yesterday as saying that if the BS&T shareholders felt that it was in their best interest to accept the ANSA McAL offer, then Neal & Massy will sell its stake in the Barbadian company.

Source:
The Trinidad Guardian
Thursday June 28, 2007

http://www.guardian.co.tt/business4.html