Oct 2007 Financial News

Battle for BS&T ends...ANSA McAL pulls out

Oct 16, 2007

T&T’s two largest conglomerates yesterday effectively ended their fight for Barbados Shipping & Trading (BS&T), closing the book on a dramatic 15-week battle for control of one of the largest private sector companies in Barbados.

In a statement released at 3.57 pm, Neal & Massy said it was convinced that its shareholders “will derive greater benefit if Neal & Massy were to accept the ANSA McAL offer of Bds$10 for each BS&T share.”

In its statement, Neal & Massy said it had decided to tender its 28.1 per cent stake in BS&T to the ANSA McAL offer and had decided to recommend to BS&T shareholders that they should accept the ANSA McAL offer as well.

While Neal & Massy was finally willing to sell its stake in BS&T, ANSA McAL was no longer willing to buy it.

At 4.34 pm, ANSA McAL announced that it was withdrawing its offer to purchase 100 per cent of BS&T at Bds$10 per share.

ANSA McAL chief operating officer Gerry Brooks told the Guardian last night that the country’s largest conglomerate had decided to withdraw its bid for BS&T because of the hostility of the Barbadian company’s board.

He cited an October 5 decision of the BS&T board which had rejected the ANSA McAL offer of Bds$10 per share while expressing a clear preference for a combination with Neal & Massy.

Brooks also cited the fact that the BS&T board did not share information or agree to meet with the ANSA McAL board to discuss the T&T company’s offer.

“BS&T was not willing to provide us with critical information or insight into their plans, including the fact that they may be involved in a transaction that may materially affect their balance sheet,” said Brooks.

He said that at the end of the day, the ANSA McAL board took the decision to withdraw as this was viewed as being in the best interest of its shareholders.

ANSA McAL would now be pursuing other opportunities in the Caribbean, Brooks said.

Asked about the timing of the two releases, Brooks said there had been no prior communication from Neal & Massy on its decision to tender its shares in BS&T to ANSA McAL before his company decided to withdraw its offer.

The Neal & Massy statement made it clear that the company had decided that it would be in its best interest to sell its stake in BS&T to ANSA McAL for Bds$10.

Neal & Massy’s last bid to acquire BS&T was for Bds$8.50 in cash or a combination of 2.75 BS&T shares for one Neal & Massy share plus Bds$1.80 in cash.

Neal & Massy said while it was encouraging shareholders to accept its combination offer, it had to accept that the majority of BS&T shareholders “would prefer to receive cash for their shares.”

The statement also said Neal & Massy was obliged to act in the best interest of its shareholders and was convinced that “they will receive greater benefit if Neal & Massy were to accept the ANSA McAL offer of Bds$10 for each BS&T share.”

ANSA McAL announced on June 22 that it proposed to offer Bds$7 a share for BS&T as an alternative option to Neal & Massy’s proposed merger with the Barbados company.

After ANSA McAL announced its competing bid, Neal & Massy dropped its merger proposal for BS&T.

Source:
The Trinidad Guardian, Page 5
Tuesday October 16, 2007

http://www.guardian.co.tt/news9.html