Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Tenon Queries Unauthorised Rubicon “Inducement”

Tenon Queries Unauthorised Rubicon “Inducement” Payments

Auckland, 27 May, 2004 – The Independent Directors of Tenon Limited have today filed a complaint with the Takeovers Panel that Rubicon has made an unauthorised variation to its partial takeover Offer, by offering inducements to third parties to encourage acceptance by Tenon shareholders of Rubicon’s Offer for Tenon shares.

Rubicon announced yesterday that it would pay a handling fee of between $50 and $750 per acceptance to Trading Participants on the NZX, who procure acceptance of its Offer from Tenon shareholders.

The Independent Directors consider that the introduction of the handling fee within the 14-day period prior to the closing date for the Rubicon Offer (during which no changes can be made to the Offer), constitutes an unauthorised change in the terms of the Offer.

The Independent Directors feel bound to advise shareholders that they believe an unauthorised inducement is being offered, and that they are seeking the views of the Takeovers Panel on this important issue.

The Independent Directors are aware that there is precedent for the action Rubicon has taken, and that no reputable broker or adviser would fail to advise their clients that they were receiving a benefit if their clients agree to sell their Tenon shares to Rubicon. However, the inducement payment should have been included in the formal Offer or in a variation sent to all shareholders in a timely manner, and prior to the 14-day period referred to above, to ensure that shareholders were adequately informed about this important issue.

The Independent Directors are also extremely concerned that, given the late stage of the Rubicon variation, being a week before the Rubicon offer closes, Rubicon has made it practically impossible for the Independent Directors to effectively communicate directly with shareholders on this issue.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>


Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>