re: trading halt - regarding negotiations-news
Friday February 10, 9:19 AM INTERVIEW:Barloworld Still Looking At Australia's Wattyl
By Bill Lindsay Of DOW JONES NEWSWIRES
SYDNEY (Dow Jones)--Barloworld Coatings, the South African-owned rival to takeover target Australian paint maker Wattyl Ltd. (WYL.AU), Friday said it isn't quite ready to reveal its hand.
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Wattyl, which has rejected a hostile A$3.25 a share bid from Allco Equity Partners (AEQPA.AU), Friday sought a trading halt, pending a statement due Monday.
The target company said it "is currently involved in confidential and incomplete negotiations with respect to a proposal which, if announced, would be likely to have a material effect on the price of Wattyl shares".
Garth Smart, managing director of Barloworld Coatings Australia, told Dow Jones Newswires his company has not completed its review of Allco's late December bid for Wattyl.
"When we are in a position to say anything and we need to say something then we clearly will, but we're just not in a position to do that at the moment," said Smart, whose company owns rival paint brands Taubmans, Bristol and White Knight.
While Barloworld's Dec. 28 statement said its review should be completed in early February, Smith said; "It will be finalized shortly, so it's not going to be long but I can't say exactly just when it's going to be."
Any potential tie up between Barloworld and Wattyl is likely to attract the attention of the Australian Competition and Consumer Commission, which blocked Wattyl's attempts to buy Taubmans in 1996.
Wattyl has rejected Allco's bid based on an independent expert share valuation of between A$3.59 and A$4.21. It wasn't available for further comment on its statement.
Its shares last traded Thursday at A$3.54.
-By Bill Lindsay, Dow Jones Newswires; 61-2-8235-2956; [email protected] -Edited by Ian Pemberton
WYL Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
