Rural Equities labels St Laurance bid a Claytons one

Wednesday 9th June 2004

The company associated with Sir Selwyn Cushing which is trying to gain control of Rural Equities has hit back at a rival bid from St Laurence Group.
St Laurence made a stand in the market for 19.9% of the company, then only to withdraw it on the grounds it confused shareholders.
H & G has described it as a "Claytons" stand in the market.
"What they are asking Rural Equities shareholders to do is to make a binding offer to sell to St Laurence, without St Laurence having any obligation to purchase the shares, while St Laurence remains free to accept offers on a different basis," H & G director David Cushing says.

He has told shareholders that "H & G is in this for the long haul". The company and certain of its associates already control about 35% of Rural Equities.

Cushing has held out the prospect that it may increase its offer from the current price of $1.25 share and says shareholders who have already accepted the offer will be paid the higher price.

If it succeeds with its partial offer H & G will end up owning 40.8% of the company, but with its associates will control it with 50.1%.

Rural Equities was split off from Hawkes Bay rural services firm Williams and Kettle earlier this year. It manages the New Zealand Rural Property Trust and also owns 32% of the Trust.

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