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[sharechat] PRG and Gaynor

From: "Rebecca Bibby " <>
Date: Sat, 27 Oct 2001 15:43:00 +1300

In today's NZ Herald, there were some rather odd conclusions in Brian
Gaynor's article on whether Eric Watson's offer to Pacific Retail
Group shareholders is a fair one or not.

Gaynor asserts that 
 the $1.76 offer is actually equivalent to $1.96 "after the price is
adjusted for a one-in-nine bonus in April last year" (Is this some
new maths?)
 Mark Hotchin, who has been on the PRG board since 1999, "should
have a clear view of the company's worth". (How about telling
everyone that Hotchin is also a mate, buddy and business partner of
Watson and his views/actions would have to be viewed in that light?)

And lastly, Gaynor could have spelt out to readers that after Watson
had bought 73.7% of PRG in December 1998, he could have easily sold
out (and make a quick $10m profit) some 12 days later at the higher
price of $1.60 offered by counter bidder Farmers Deka. However Watson
didn't and even back then, he obviously felt that PRG was worth far
than $1.60 per share. Now nearly three years later, he is only
offering 16c more per share - hardly cricket, is it?

In the past, I had always considered Gaynor to be pretty impartial
but after reading his dissertation on PRG, I am no longer sure.


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