Oct 2007 Financial News

Bidding war for BS&T - Neal and Massy pulls out

Oct 16, 2007

LOCAL conglomerate Neal and Massy Holdings has pulled out of a bidding war with ANSA McAL for the shares of Barbadian powerhouse Barbados Shipping and Trading Company (BS&T).

This surprise move by Neal and Massy yesterday will leave the door open for ANSA McAL to fully take over BS&T, with the relevant support from the company's shareholders.

Neal and Massy will also be selling its 28 per cent shareholding in BS&T to ANSA McAL.

Several months ago, Neal and Massy announced plans to merge with its long-time associate BS&T. That was followed by a takeover bid for the company by ANSA McAL.

Neal and Massy then withdrew its merger proposal and launched into a takeover bid of its own.

The competing bids for BS&T by Neal and Massy and McAl have resulted in the BS&T share price almost doubling since the commencement of the takeover process.

At present, Neal and Massy's offer, which closes on October 18, stands at Bds$8.50 cash for each BS&T share, or a combination of 2.75 BS&T shares for one Neal and Massy share plus Bds$1.80 for every BS&T share.

McAL's offer, which closes on October 22, is Bds$10 for each BS&T share.

Neal and Massy chairman Arthur Lok Jack told the Express yesterday that he was disappointed in the turn of events, but noted his priority is with his duty to seek the best interest of the Neal and Massy shareholders.

He added that the BS&T management was also disappointed by Neal and Massy's decision to withdraw its bid for the company, but it too had a responsibility to its shareholders.

"I am disappointed, but I have to admit that $10 is better than $8.50. When we did the mathematics we knew that $8.50 was the furthest we were willing to go," Lok Jack said.

He explained that a large chunk of money set aside for further expansion of the two companies, following a successful takeover, would have gone into the pockets of the BS&T shareholders if the company had gone above the Bds$8.50 share price.

Lok Jack added that "Neal and Massy offers best wishes to the McAL Group in its future endeavours with BS&T".

Source:
Driselle Ramjohn dramjohn@trinidadexpress.com
The Daily Express, Page 10
Tuesday, October 16th 2007

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