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Institutional Shareholder Response to Offer for Wegener NV
LONDON, September 6 /PRNewswire/ -- Governance for Owners LLP (GO), one of the largest institutional shareholders in Koninklijke Wegener NV (Wegener) holding 13.29% of Wegener's ordinary shares, announces its response to the offer by Mecom Group plc for Wegener made on 28 August 2007. GO believes that this offer does not reflect the true value of Wegener and leaves Mecom with all the benefits from acquiring this improving, high-quality Dutch business. - GO is a long term supportive shareholder and sees Wegener as having an excellent future with considerable scope for increasing shareholder value and growing profits over a number of years. - As the recent positive results demonstrate, Wegener management is implementing a strong profit improvement programme - the offer does not include the value of these improvements which belong to existing Wegener shareholders. In addition, a link with Mecom will create further synergies - a fairer proportion of these profits should accrue to Wegener shareholders. - The acquisition of Wegener appears to be critical part of Mecom's strategy and this is not reflected in the value of the bid. Commenting on the offer Peter Butler, founder partner and CEO of GO, said: "This offer is an attempt to acquire Wegener for less than its real value. Governance for Owners is not convinced that Mecom is the right partner for Wegener at this stage of its development. As a long term shareholder, we wish to encourage Wegener's management to explore alternative growth options." Background Mecom launched its offer on 28 August 2007 for Wegener at a price of EUR17.70 or 14.287 Mecom shares per Wegener share. Mecom is traded on AIM in London. Funds under the management of GO own 5,961,994 ordinary shares in Wegener, which represents 13.29% of Wegener's ordinary share capital. Governance for Owners GO is an independent partnership between major financial institutions, shareowners and executives dedicated to adding long-term value for clients by exercising owners' rights. There are two main product offerings. The GO European Focus Fund, which invests in European public companies where value can be added through making use of ownership rights. The GO Stewardship Services offers voting and underlying engagement service covering 1,500 quoted companies in Europe, the US and SE Asia combined with a more intensive programme of enhanced-value engagement. http://www.g4owners.com Governance for Owners will not be liable towards third parties on the basis of this statement.
