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."
See IRG research reports
