looks like a takeover could be on
normally this would mean they are talking watch this space.
Wadepack denies Carter Holt deal 17 September 2004 By BERNARD HICKEY
Australian packaging company Wadepack has denied a report that Carter Holt is conducting due diligence ahead of a possible NZ$60 million-plus takeover bid.
Carter Holt, which is cashed up after the sale of its Tissues unit for more than $1 billion, was reported to be in negotiations with the manufacturer of cardboard and plastic packaging.
Wadepack managing director Ashod Nassibian said yesterday that Carter Holt was not conducting due diligence and the company had not been put up for sale.
"It's not true," he said of the report.
Mr Nassibian denied that bankers had been instructed to look for buyers and declined further comment.
Wadepack, which is 40 per cent owned by Mr Nassibian, has plants in Melbourne, Sydney and Brisbane and has more than 300 employees. It supplies printed cardboard, plastic and foil packaging to consumer goods and pharmaceuticals companies.
Carter Holt has said it is looking for acquisitions in its core markets of timber products and packaging in Australia and New Zealand, having already returned $480 million of the Tissues sale proceeds to shareholders.
AdvertisementAdvertisementCarter Holt spent NZ$210 million in July buying an 85 per cent stake in Chinese medium density fibreboard maker PTP and analysts have said it was now on the prowl for smaller 'bolt-on' acquisitions.
Wadepack has a market capitalisation of A$59 million (NZ$62 million), though its shares did not trade yesterday. It has traded near A$2 recently. Carter Holt closed 2 cents higher at $2.27.
Carter Holt would be expected to bid at a significant premium if it wanted to be successful.
A Carter Holt spokesman declined comment on the report.
