By NZPA
|
Thursday 25th January 2007 |
Text too small? |
PFG said yesterday it would pay $5 per share, a 20% premium to CBS shares' Tuesday close of $4.16. PFG said the two companies were similar, both specialising in non-bank first mortgage lending.
However, in a letter to shareholders today, CBS directors said that while the company fitted PFG's aspirations for fast growth, it was a larger company and had posted a profit in 2006, against PFG's net loss.
"Discussions on a merger are therefore premature at this stage," CBS chairman Graham Kennedy said.
"The offer is recognition of the strength of CBS Canterbury's strong market position in Canterbury at a time when there are expectations of business aggregation in the financial sector."
CBS directors would carry out due diligence on PFG, "to satisfy themselves that the operations and business culture of the PFG enterprise would be compatible with the proven and prudent growth strategies of CBS and that any corporate development added value to CBS shareholders," Kennedy said.
"Although CBS Canterbury directors do not intend accepting the PFG offer for themselves, they request that individual shareholders seek their own professional advice as there may be circumstances where the offer should be accepted."
PFG said yesterday it had no intention of launching a full takeover bid for CBS but wanted to talk to CBS' board about future joint growth opportunities.
PFG has instructed Forsyth Barr to act for it in the market stand, which closes on Friday.
CBS shares were untraded today, having ranged between $3.98 and $4.34 in the past year. PFG shares closed yesterday at $1.30.
No comments yet
POT completes sale of Rolleston property asset
RAD - Radius Health to Release 1H27 Results on 11 November 2026
PCT Climate Related Disclosures 2026
SPN confirms FY26 result & provides leadership update
AGL - Accordant Group FY27 Half Year results
AIR - Air NZ to hold investor update
NZM - NZME receives offer for renewal of radio spectrum licences
October 28th Morning Report
ARG - FY27 interim results announcement date and webcast details
Devon Funds Morning Note - 27 October 2026