Offer Clarification

Macfarlane Group PLC 13 December 2000 PRESS RELEASE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC OF IRELAND OR JAPAN 13 December 2000 FOR IMMEDIATE RELEASE MACFARLANE GROUP INCREASED FINAL* CASH OFFER FOR BRITISH POLYTHENE INDUSTRIES PLC UBS withdraws previous support for BPI proposals The board of Macfarlane has noted BPI's announcement that UBS Asset Management Limited ('UBS') has now been released by BPI from its legal undertaking to limit the number of shares which it would tender under BPI's proposed partial return of capital. Clearly UBS now has the opportunity to realise cash to its maximum entitlement under the proposed tender offer should it so wish. This action by BPI disadvantages other BPI shareholders as it restricts the number of shares for which they may successfully tender and therefore increases their ongoing exposure to BPI's share price performance. BPI has made further claims of support in its announcement. BPI shareholders should now consider whether the board of BPI will actually enforce these undertakings or whether, as with UBS, they will release them at a later date. Macfarlane believes that this about turn vindicates Macfarlane's position in advising BPI shareholders not to rely on statements made in BPI's defence. Instead BPI shareholders should focus on Macfarlane's Increased Final Offer of 310 pence in cash for every BPI share. Macfarlane is concerned that BPI may be encouraging speculation in the minds of a number of BPI shareholders that if the Macfarlane bid were unsuccessful then Macfarlane would return with a higher offer. Any suggestion by BPI that a higher recommended offer by Macfarlane may be forthcoming in the future is entirely without foundation. Macfarlane will not raise its final offer beyond 310 pence per share*. Macfarlane emphasises that in the event that its offer is unsuccessful, as the largest single shareholder in BPI, it too may participate in BPI's proposed partial return of capital. In this case Macfarlane would emphasise that its intention would be to tender for its full entitlement under BPI's buyback scheme and sell its remaining shares in the market. Macfarlane urges BPI shareholders to accept its Increased Final Offer now. This announcement should be read in conjunction with the Original Offer Document, the document sent to BPI shareholders on 2 November 2000, the Increased Final Offer Document, the letters sent to BPI shareholders on 8 December 2000 and 12 December 2000, and the Revised Form of Acceptance. Definitions contained in these documents apply in this letter save where the context requires otherwise. * Macfarlane reserves the right to revise and/or increase and /or extend the Increased Final Offer in the event of a competitive situation (as determined by the Panel) arising or otherwise with the consent of the Panel. Enquiries: Macfarlane Group PLC 0141 333 9666 Iain Duffin Noble Grossart Limited 0131 226 7011 Sir Angus Grossart Todd Nugent HSBC 020 7336 9000 John Hannaford Bell Pottinger 020 7353 9203 David Rydell Kate Power Beattie Media 01698 787878 Gordon Beattie Copies of the Original Offer Document, the document sent to BPI shareholders on 2 November 2000, the Increased Final Offer Document, the letter sent to BPI shareholders on 8 December 2000 and 12 December 2000, and the Revised Form of Acceptance are available free of charge from Lloyds TSB Registrars, Antholin House, 71 Queen Street, London EC4N 1SL (telephone 0870 600 2027). The directors of Macfarlane (whose names are set out in paragraph 2 of part 7 of the Original Offer Document) accept responsibility for the information contained in this announcement save that the only responsibility accepted by them in respect of the information contained in this announcement relating to BPI, which has been compiled from publicly available sources, has been to ensure that such information has been correctly and fairly reproduced and presented. Save as aforesaid, to the best of the knowledge and belief of the directors of Macfarlane (who have taken all reasonable care to ensure that such is the case), the information contained in this announcement for which they accept responsibility is in accordance with the facts and does not omit anything likely to affect the import of such information. Noble Grossart Limited, which is regulated in the UK by The Securities and Futures Authority Limited, is acting for Macfarlane and no one else in connection with the Increased Final Offer, and will not be responsible to anyone other than Macfarlane for providing the protections afforded to customers of Noble Grossart, or for providing advice in relation to the Increased Final Offer. The contents of this announcement have been approved by Noble Grossart Limited for the purpose only of Section 57 of the Financial Services Act 1986.
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