Analysts question handling of Bendon bid by directors

By Nick Stride

Friday 15th February 2002

Eyebrows are being raised over Bendon directors' handling of competing takeover bids from the company's own management and Pacific Retail Group.

Analysts were yesterday questioning the independent directors' release, even before PRG published the terms of its bid, of the valuation of Bendon contained in an independent appraisal report.

Appraiser Grant Samuel values the company's shares at 194c to 219c, higher than both PRG's 190c cash bid and the effective 181c offered by a consortium of AMP and Hugo Venter, Bendon's managing director.

Also causing some puzzlement was the independent directors' assertion they had commissioned the Grant Samuel report "on the merits of PRG's proposed offer."

The report was in fact commissioned before PRG announced its interest in bidding for Bendon, but after the Venter/AMP bid was announced.

PRG yesterday explained the rationale for its bid.

It said opportunities for significant growth in its core appliance retailing area were limited.

Bendon was a marketer, wholesaler and retailer with different, but complementary characteristics to PRG's business.

"This initiative to diversify Pacific Retail's core business strengths, and to look to add value through operating expertise and synergies, represents a very attractive opportunity," a Stock Exchange release said.

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