Grande swoops on Silver Eagle

GRANDE Holdings has made a $148.2 million bid for shoemaker Silver Eagle Holdings.

Silver Eagle's shares have been suspended since August 31.

According to Arthur Tse, managing director of Silver Eagle, the company's results are being finalised and auditor Ernst and Young is completing a financial review of the group's business plan.

Silver Eagle said the takeover deal was being undertaken because of the likelihood it would have to make material provisions in its accounts and the need to strengthen its financial and cash-flow position.

The boards of Grande and Silver Eagle are proposing a subscription arrangement to shareholders which would see Grande take 570 million new shares at 26 cents a share, a discount of 42.7 per cent to the last price at which Silver Eagle was traded - 45.4 cents.

Taking up the 570 million new shares, representing 158.3 per cent of Silver Eagle's current issued capital, would see Grande become controlling shareholder in Silver Eagle with a 61.3 per cent stake in the enlarged capital of the company.