I'm a little disappointed on this one. I was hoping to get this up on the site prior to any announcement. I could see something was up.

There has been more activity than usual in this stock in Aug/Sept: announced to the market on the 26th Oct, a takeover bid. Note the break into new highs on the 25th. An AFR article is reported below. A surprise bid ? What do you think ?

AFR 27/10/99
Parbury rejects "inadequate" $44 m bid by Atins Carlyle.

Perth automotive and industrial group Atkins Carlyle yesterday sought to expand its stable of industrial franchises with a surprise $44 million takeover bid for building products group Parbury. The bid values the target at 35c a share and is conditional on 50.1 per cent acceptance but was immediately regected by Parbury directors as " inadequate". Parbury shares rose 5c yesterday to close at a year high of 40c.

Atkins Carlyle's chief executive, Mr Kevin Clarke, said his group had been eyeing Parbury as a potential acquisition for at least 12 months. He said the acquisition was in line with the group's strategy of acquiring strong industrial franchises built around strong inernational brands, and dismissd suggestions Parbury would be a poor fit with the group's current business portfolio.

"These businesses might be in differing sectors but the dynamics of each are identical," Mr Clarke said.

Parbury comprises two divisions: building products and technologies, which makes and manufactures specialty chemicals for the construction industry. The group was recently rated by Forbes magazine as one of the world's best 300 "smaller businesses".

In its latest annual report, Parbury said it aimed to generated revenue of $250 million and earnings of 6c a share within three to four years after in August posting a pre-abnormal result of $3.5 million for fiscal 1999. However, Mr Clarke claimed that despite the forcast, the market had continued to value the company around 28c until late September, justifying the bid price of 35c - a 22 per cent premium to Parbury's weighted average price for the past month.

"we think at 35c, taking account of a potential building slowdown, this offer is full and fair," Mr Clarke said.

Salomon Smith Barney recently issued a sum-of-parts valuation of 42c per share for the business. Parbury managing director Mr Gary Greenbank said the offer materially undervalued Parbury's businesses.

"I think it is early in the game and there is a long way to go yet," he said. Parbury disclosed yesterday that its earnings were ahead of ecpectation in the first quarter of fiscal 2000. Atkins Carlyle, which is being advised by Caliburn Partnership, has already amassed a 5.1 per cent stake in its target. Major shareholders in Parbury include BT, Morgan Stanley, the US-based Harris Associates and HIH.

Analysts said they were surprised by the bid, given the differing business profiles of the two groups. Mr Clarke sid his group planned to keep Parbury as a stand-alone company and had no plans to merge any of its business or undertake wholsale ration-alisation. The bid will be funded by existing cash reserves and an unsecured debt facility with BankWest , and is conditional on Parbury maintaining its existing Wilson rt laminate distribution agreement.