Oct 2007 Financial News

BS&T BIDDING BREACH?

Oct 26, 2007

THE SECURITIES COMMISSION yesterday disclosed that there were likely breaches of Barbados' takeover laws in the bidding war for Barbados Shipping and Trading (BS&T).

In a step that has called a virtual halt to the hectic bidding war, the commission also stated that it had hired senior legal counsel to advise and, if necessary, take legal action to protect shareholders' rights.

In a statement issued late yesterday, the commission also suggested that BS&T's 3 000 shareholders "refrain from taking any further action regarding the tendering of their shares to any and all offers until this matter has been fully ventilated and some order is restored to what has become a disorderly transaction".

The commission's dramatic entry into the rivalry between two Trinidadian corporate giants for the Barbadian conglomerate followed ANSA McAL's surprise withdrawal of its $10 per share offer and Neal & Massy's announcement that it would offer its 28 per cent shareholding in BS&T to McAL.

Both companies announced their backing away from the bidding on October 15.

Neal & Massy has since revised its $8.50 per share offer for all BS&T shares to $8.50 for up to 50 per cent of the shares and the rest at an exchange ratio of one Neal & Massy share for every 2.75 BS&T shares.

In yesterday's statement signed by commission chairman Sir Neville Nicholls, the regulatory body said the board met earlier in the day and determined that "it was likely that there were breaches of the provisions of the takeover bid regulations by [a] party or parties to the BS&T transaction".

As a result of the recommendation from the commission, Neal & Massy's attempt to take over BS&T could be stalled for legal reasons again.

The company's attempt at a merger last May was also affected by court action taken by three BS&T shareholders who demanded more detailed information from the boards of directors of BS&T and Neal & Massy.

Source:
Geralyn Edward
The Nation Newspaper
Wednesday October 24, 2007

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