Jan 2008 Financial News

B’dos Securities Commission amends trade order against N&M

Jan 03, 2008

The Neal & Massy Group (N&M) has received a cease trade order from the Barbados Securities Commission (BSC) over the conglomerate’s bid to acquire Barbados Shipping & Trading (BS&T).

The order prevents N&M from buying or selling BS&T shares until January 31 or until the BSC instructs otherwise.

The decision is so frustrating N&M chief executive officer, Bernard Dulal-Whiteway, that he’s considering whether to give up on the takeover of BS&T.

The BSC stated it applied the cease trade order in the public’s interest and to protect investors.

The cease order means N&M would take more than the 30 days required to buy and pay BS&T shareholders who tendered their shares to it.

N&M had more than 80 per cent of BS&T shares committed to it.

Dulal-Whiteway is quoted in a regional newspaper as stating that N&M would “regroup” and that a decision to cease the takeover exercise was “now a live possibility” because the BSC “seems determined to ensure that we do not take up and pay shareholders.”

“This is not a piece of land that we are buying. This is a living organisation with people’s jobs at stake, new investments and suppliers waiting for this thing to finish and this is affecting BS&T,” Dulal-Whiteway said.

He said the Barbados High Court was unlikely to reach a decision on the matter before the end of January, and even if it did, appeals were to be expected.

“This thing could go on for years,” Dulal-Whiteway said.

…N&M’s response

In responding to Barbados Securities Commission’s (BSC) order of December 31, 2007, the Neal & Massy Group said it contained “two very false and misleading impressions.”

Following is the T&T conglomerate’s

response to the order:

1. Firstly, that Neal & Massy Holdings Ltd had accepted tenders from one or more BS&T shareholders subject to conditions that were not stated in its offer document and not available to all BS&T shareholders.

2. Secondly, that Neal & Massy would not be willing to obey any order that the court might make in the pending proceedings regarding its takeover bid for BS&T.

“Neal & Massy categorically refutes such allegations of the Securities Commission,” read its statement issued yesterday.

The Group went further: “Neal & Massy confirms that it has not accepted any BS&T shares subject to the conditions alleged by the Securities Commission and that it considers the allegations made by the Securities Commission to be libellous and damaging.

“Neal & Massy is also aware that the Securities Commission has carried out its own investigation and has found no grounds to support such spurious claims.”

N&M also denied it has ever indicated its refusal to abide by the Barbados High Court’s final order and said it was “surprised” at the “very false and misleading suggestion” of the Securities Commission that Neal & Massy would deliberately disobey an order of the court. In declaring its “utmost respect” for the rule of law, N&M said it will abide by any final order that may be made at the conclusion of the legal process.

“Neal & Massy has previously made this position very clear to the Securities Commission, and is very surprised and disappointed that the Securities Commission would make such inaccurate, irresponsible and damaging insinuations.

“Neal & Massy will do everything in its power to ensure that its reputation is not tarnished in any way by anyone, that due process is observed and that the rights of all stakeholders are protected within the context and dictates of all applicable laws,” the statement ended.

Source:
Sandra Chouthi
The Trinidad Guardian
Thursday 3rd January, 2008