Claims muddy Bell's buyout

LOOSE ENDS: CLOUD HANGING OVER THE COMPANY'S R762M OFFER AND DELISTING

- Roy Cokayne

Heavy equipment maker will be delisted from the JSE if offer is successful.

A potential cloud is hanging over the proposed R762.5 million offer by JSE-listed Bell Equipment to buy out some minority shareholders who own about 15% of the issued shares of the heavy equipment manufacturer and delist the company.

This follows allegations that some minority shareholders, who were apparently acting in concert, failed to notify the market that they had increased their shareholding to 5% or more in Bell Equipment, which should have triggered the issuing of a mandatory notice to shareholders.

Carson Mitchell, the managing member of Shipyard Capital Management LLC, which owns 1.3 million Bell Equipment shares, said on Monday he had made two written appeals to Bell Equipment's board in the past few months urging them to issue a cautionary statement to the market.

"Shareholders who sold below R53 in recent months may have been taken advantage of by parties who knew more than the market knew," he said.