FKP 0.98% $2.03 fkp property group

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    osheas better offer? t/over delays. Panel ruling delays FKP payment for Forest Place shares
    15:00, Wednesday, 21 January 2004

    Sydney - Wednesday - January 21: (RWE) - The payment by FKP Ltd
    of acceptances to Forest Place Group shareholders will be delayed
    following an interim order issued by the Takeovers Panel.
    The panel has received an assurance from Peter and John O'Shea
    that they will provide additional evidence supporting their application
    to the panel.
    The application relates to payments FKP agreed to make to Mr
    Munro and Mr Withey, founding directors of Forest Place, in relation to
    the termination and assignment of certain contracts their associated
    entities had with Forest Place.
    The additional evidence will take the form of an accountant's
    report on the issue of whether that agreement provides collateral
    benefits to the relevant shareholders.
    "On the basis of that assurance, the panel has decided to
    conduct proceedings in relation to the application," the Takeovers Panel
    said in a statement today.
    "In order to preserve the present situation, the panel has made
    an interim order restraining FKP from giving effect to the clause of the
    pre-bid agreement to which the application relates, and from processing
    acceptances of the bid, while the proceedings continue.
    "Accordingly, accepting shareholders will not be paid for their
    shares, and their shares will not be transferred to FKP, for about three
    weeks, subject to the panel's decision at the completion of the
    proceedings," the panel said.
    FKP chief executive Mr Peter Brown said in a statement today:
    "The vast majority of Forest Place shareholders were very happy to
    accept our offer of 50c a share, so it is a pity that these people will
    now have to wait for their payment.
    "We have received acceptances from 852 shareholders representing
    78.22 per cent of Forest Place and remain ready and able to pay them as
    soon as possible after the panel has reached its determination on the
    O'Sheas' application."
    Mr Brown said the claims raised in the O'Sheas' application were
    not consistent with their conduct before FKP made its bid for Forest
    Place in November.
    "The O'Sheas have accumulated a substantial shareholding in
    Forest Place since 2002.
    "The contracts with Withey and Munro were in place prior to this
    "The contracts were also fully disclosed in the company's
    prospectus, as part of its initial public offering in 1993, and the
    contract with the Munro Group was the subject of extensive scrutiny as
    part of a legal dispute with Forest Place in late 2001," he said.
    "In the two weeks leading up to our bid the O'Sheas sold more
    than 800,000 shares at around 36c, but now claim that FKP's offer of 50c
    a share is inadequate.
    "Since the announcement of our bid the O'Sheas have purchased a
    further 5.6 per cent in Forest Place to take their current holding to
    11.51 per cent.
    "Before declaring our bid unconditional on 22 December 2003 our
    bid was subject to the receipt of acceptances for at least 90 per cent
    of Forest Place," Mr Brown said.
    Shares in Forest Place traded steady at 49.5c today while FKP
    fell 2c to $2.59.
    Copyright © 2004 RWE Australian Business News. All rights reserved.

    no further interest seems FPG closed 49.5
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