Business: Lascelles challenges takeover bid

Steven Jackson, Business Reporter



Conglomerate Lascelles deMercado and Company (LdM) has challenged the validity of the revised proposal, made by hostile takeover bidder Black Sand Acquisition, through an appeals tribunal at the Financial Services Commission (FSC).



"We are actually challenging the Black Sand revised offer in an FSC appeals tribunal," said Jane George, company secretary in a Gleaner interview this morning.



George said the tribunal would begin its hearing at 10 am and run into this afternoon.



The appeal seeks to delay the release of Lascelles' Directors Circular, a document officially responding to the takeover bid.



Last week, Lascelles required Black Sand to submit an amended bid proposal in accordance with what it described as regulatory guidelines.



Black Sand responded by clarifying that the 74.26 million Carreras shares held by Lascelles were not put up for sale as claimed, while extending the US$3.86 per share offer deadline initially by a month, from September 19 to October 18.



Last month, LdM stated that Black Sand's original proposal was undervalued, lacked evidence of the capital, and could strip the group of its profitable Appleton Rum brand.



Consequently, it advised shareholders to hold on to shares until further notice.



Black Sand, a group of investors led by former Lascelles managing director, William McConnell, has bid for no less than 90 per cent of Lascelles' ordinary shares and 100 per cent of the two preference stocks.



Direct subsidiaries of Lascelles are: Wray & Nephew group, Globe Limited, Globe Holdings Limited, Lascelles Merchandise Limited, Ajas Limited, John Crook Limited, Transportation Agencies Limited, and Turks Island Importers Limited.



Read more in tomorrow's Financial Gleaner.



steven.jackson@gleanerjm.com