Feb 2008 Financial News

Neal & Massy blocked again

Feb 01, 2008

The Barbados Securities Commission has again barred Trinidadian conglomerate Neal & Massy from trading Barbados Shipping & Trading (BS&T) shares.

The ban is in place for another month or until the Commission otherwise orders.

The move essentially blocks Neal & Massy from taking over the Barbadian company despite the fact that the majority of BS&T's 3 000 shareholders had pledged their stocks to Neal & Massy.

And last night Neal & Massy's managing director Bernard Dulal-Whiteway said he continued to be very disappointed with the turn of events particularly after officials of the company and the commission had been engaged in three weeks of "intense negotiations" to try to settle the matter.

"About three weeks ago the parties all met in Barbados and arrived at what we thought was an agreement on the way forward which would have been to the satisfaction of all parties and shareholders."

"After three weeks we have not been able for some reason or another put into effect the settlement," he added.

Dulal-Whiteway told the DAILY NATION the most recent move by the commission had forced Neal & Massy to "once more critically examine its position on the matter and look at all our options including but not limited to rescinding of its offer" to buy BS&T.

The top Neal & Massy executive lamented the fact that since December the company had "significant funds tied up ready to be paid to shareholders" but now the "funds were not working for us" and the "continued delay and uncertainty is now of great concern to our directors".

He said the Trinidadian company was still hopeful that a resolution can be hammered out.

In court action instituted by the Commission it is was seeking a declaration from the court that ANSA McAL's withdrawal published on October 16 was in breach of the takeover bid regulations and thus was illegal and void.

It also wants a declaration that Neal & Massy's announcement on October 16 "amounted in law to a withdrawal" and that its amended offer to 50 per cent of each BS&T shareholder's shareholding was illegal. (GE)


Source:
The Nation Newspaper
Wednesday January 30, 2008

http://www.nationnews.com/story/20437604022154.php