CSR SAYS IT IS PROCEEDING WITH OFFER FOR MONIER
CSR Ltd <CSRA.S> intends to proceed with
its planned bid for building materials group Monier Ltd
<MNRA.S> despite the counter-bid from <Equiticorp Tasman Ltd>
(ETL), CSR executive director Gene Herbert told Reuters.
    ETL said today it would offer 4.15 dlrs each for Monier's
issued capital of 156.28 mln shares, plus a share alternative.
This compares with a 3.80 dlr cash element in CSR's proposed
bid.
    The proposed offer by ETL, controlled by New Zealand
entrepreneur Allan Hawkins, came after it built up a 14.99 pct
stake in Monier in a 95 mln dlr share raid in recent days.

    Herbert said Britain's Redland Plc <RDLD.L>, which holds
just under 50 pct of Monier, still supported the CSR bid and
had told CSR it is not a seller.
    He said Redland wanted to maintain and build on its
operations in Australia and the U.S., Where Monier has built up
a strong presence, notably in roofing tile manufacture.
    The CSR offer contains a put and call option agreement with
Redland. This enables Redland to accept the CSR bid within six
months of its close or to lift its stake to 50.1 pct in the
same period and to run Monier as a joint venture with CSR.
    CSR has said that Redland will take up the second option.

    ETL has declined to say why it intervened in Monier, beyond
describing it as a long term investment.
    ETL would bring no synergies to Monier, unlike CSR which is
a leader in building materials, Herbert said.
    "We fit better with Monier," he said.
    CSR has said that it will concentrate development on its
core businesses of sugar and building materials after its moves
into energy several years ago.
    Asked what he thought ETL's bid sought to achieve, Herbert
said: "I'm puzzled as to what Hawkins' strategy is. One has to
wonder if Monier is the main target."

    Herbert said CSR had no plans to raise its bid, and said a
higher price would be difficult to justify on fundamentals.
    Monier was trading at 2.80 dlrs when CSR launched its
original bid of 3.50, or 16.8 times earnings, in late April.
    The shares closed at 3.90 dlrs today, down 25 cents on
yesterday, after ETL withdrew on reaching the top foreign
shareholding level permitted without Foreign Investment Review
Board (FIRB) approval. Its bid is subject to FIRB approval.
    Herbert also said that institutions, which are more likely
to accept a share alternative than cash, would have to judge
the respective values of ETL and CSR shares.

    ETL is the third group to become involved in a possible
acquisition of Monier this year. Redland held discussions on a
possible takeover before the CSR bid emerged but the
negotiations foundered on the price.
    Share analysts said that for this reason, they did not
think ETL's intervention would flush out a full Redland bid
although Monier's ultimate fate rests in its hands.
    "Redland is still in the driving seat," said Tim Cohen of
<Ord Minnett Ltd>, adding that Redland would be happier having
CSR as a partner in running Monier than ETL.
    Monier's independent directors have recommended ETL's bid.

 REUTER
