Macfarlane Group PLC
23 October 2000
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO
THE UNITED STATES,
CANADA, AUSTRALIA, THE REPUBLIC OF IRELAND OR JAPAN
MACFARLANE GROUP PLC ('MACFARLANE') OFFER FOR BRITISH
POLYTHENE INDUSTRIES PLC ('BPI')
RESPONSE TO BPI DEFENCE DOCUMENT
The Board of Macfarlane Group notes that British
Polythene Industries PLC has today posted its defence
document to BPI shareholders.
The Board of Macfarlane urges BPI shareholders to
carefully consider the dismal track record of BPI's
annual earnings in recent years and questions whether the
much heralded 'accelerated restructuring programme'
referred to in the defence document has any credibility.
Macfarlane Group is offering BPI shareholders a cash exit
from an underperforming business at a premium of 40%
prior to BPI announcing approaches from interested
parties.*
Iain Duffin, Macfarlane's Chief Executive, said:
'This document provides nothing new of substance. In our
view it represents a remarkably complacent statement from
a management team which has failed to arrest a decline in
earnings each year since 1996 and which has indicated
that earnings will decline still further in the current
year.
'We believe that the restructuring plan, which is claimed
in the document to be well advanced, fails to grasp the
enormity of the problem and therefore lacks credibility.
Crucially, in our view the document fails to demonstrate
a viable strategy to deliver shareholder value in excess
of 250p per share.
*This offer price is 40 per cent higher than the market
value of 178.5p per BPI share on 5 September 2000, the
day before BPI announced that it had received approaches
Enquiries:
Bell Pottinger Financial 020 7353 9203
David Rydell
Kate Power
Beattie Media 01698 787878
Gordon Beattie
Macfarlane 0141 333 9666
Iain Duffin, Chief Executive
Noble Grossart Limited 0131 226 7011
Sir Angus Grossart
Todd Nugent
HSBC 020 7336 9000
John Hannaford
Noble Grossart Limited, which is regulated in the UK by
The Securities and Futures Authority Limited, is acting
for Macfarlane and no one else in connection with the
offer and will not be responsible to any person other
than Macfarlane for providing the protections afforded to
customers of Noble Grossart Limited, or for providing
advice in relation to the offer.
The offer is not being made in the United States, Canada,
Australia, Republic of Ireland or Japan. Accordingly
copies of the offer document and the form of acceptance
are not being and must not be mailed or otherwise
distributed or sent in, into, or from, the United States,
Canada, Australia, Republic of Ireland or Japan and
persons receiving such documents (including custodians,
nominees and trustees) must not distribute or send them
in, into or from the United States, Canada, Australia,
Republic of Ireland or Japan.
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
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