22 Feb 2011

Gaynor faults PGW for lack of information

8:00 am on 22 February 2011

At least one investment expert believes shareholders are being left in the lurch by PGG Wrightson's directors.

On Monday a potential second bid for the company fell through, with PGG Wrightson saying that the unnamed party - thought to be the Canadian rural services firm Agrium - had decided not to make a full takeover offer.

That leaves the way clear for PGG Wrightson's largest shareholder, Agria, which is offering 60c a share for majority control.

But the executive director at Milford Asset Management, Brian Gaynor, says shareholders simply haven't been given enough information about Agria's plans for the firm.

He says PGW's level of disclosure has been poor in the past and is still poor.

The full offer was more attractive, Mr Gaynor says, "because I don't think there's a lot of confidence that the current board of directors are what the Chinese could possibly do with the company."

Shareholders have until 15 April to choose whether or not to accept Agria's offer for 50% of the company.