Forum Archive Index - November 2001

["nick" <helmett@xtra.co.nz>]

Danone says bid price "full" for NZ's Frucor

WELLINGTON, Nov 16 (Reuters) - French food giant Danone DANO.PA said on Friday its bid price for New Zealand drinks group Frucor Beverages FRU.NZ was full and it would consider all options after being rebuffed by the target firm's independent directors.

The offer price of NZ$2.35 per share "is a full price," Danone Asia managing director Simon Israel said in a statement.

"We will be considering all of our options including letting the current bid lapse if the condition of 90 percent acceptance is not satisfied."

Frucor directors recommended shareholders reject the offer, which values their firm at NZ$294 million, after an independent valuation said it was not fair.

Valuer Grant Samuel & Associates valued Frucor's shares between NZ$2.53 and NZ$2.96 each with a midpoint of NZ$2.74.

The valuation report included Frucor management forecasts prepared this month showing a 37 percent jump in net profit to NZ$16 million for the current 2001/02 year.

Frucor shares last traded up five cents at NZ$2.50 -- a 6.4 percent premium to the offer price.

Israel said he was not surprised by the valuation range but the bottom of the range was higher than he expected.

He was disappointed that the company's "aggressive" earnings forecasts were not substantiated in the valuation report.

"We are concerned to see the extent of the continuing losses in the UK, the fact the company as a whole is losing money and is behind budget for the four months to October," Israel said.

Since the offer was made 55 percent of shareholders had either accepted the offer or sold below the valuation range, he said.

"We are disappointed that our offer, which is already a 41 percent premium on the average price over the past six months, is not considered reasonable given there's no other bid on the table."