Just Accept Offer, Says Expert

Illawarra Mercury

Tuesday September 25, 2001

An independent expert has urged Just Jeans Group Ltd shareholders to accept a takeover offer, even though it fell short of the expert's own valuation.

The clothing retailer has moved into the last phase of its transition from a public to private company, with a shareholders' meeting to vote on the takeover set down for October 24.

Independent expert Grant Samuel and Associates valued Just Jeans in the $1.39-$1.64 range, while predator Catalyst Investments Managers Pty Ltd had offered $1.35 a share.

Grant Samuel said its valuation represented the full underlying value of Just Jeans' business operations and included a premium for control.

It said shareholders should accept the Catalyst offer as there was no alternative acquirer and it was unlikely Just Jeans shares would trade above $1.35 without the proposal.

QBE shares close higher

QBE Insurance Ltd shares rallied for the second consecutive session as investors took comfort in the group's reassurances over its exposure to the US terrorist attacks.

The stock closed nearly 16 per cent, or 79.9, stronger at $5.89 after having hit an intraday peak of $5.98 yesterday.

Market watchers said some bargain hunters had probably moved in to take advantage of the hefty falls that hit the company last week in response to news of its exposure to the US attacks.

Air NZ takes a dive

WELLINGTON.- Air New Zealand had another horrendous day on the market, losing 40 per cent in value yesterday so that its shares fell into the ``penny dreadful" class.

Air NZ unrestricted B shares dropped NZ10.5 to close at just 15.5, having traded as low as 14.

At that level, brokers said a rights issue was virtually impossible, meaning the $NZ850 million ($A716.3 million) rescue management package was most unlikely to go ahead.

© 2001 Illawarra Mercury

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