Forum Archive Index - December 2001

[mills@chem.canterbury.ac.nz]

Well Marilyn

would have to agree with you, I think that the directors are playing
their cards too close to their chests if there is another possible offer
- would seem unlikely but you never know (one can hope).  The market
seems to be discounting anything being likely by the current shareprice. 

IMO, in the absence of another bidder, Danone has no reason to increase
their offer.  Their delaying tactics are putting the jitters up people
to get out because there is no certainty of the shareprice remaining up
without Danones support - which should swing the 'uncertains' Danone's
way. 

I don't know the in's and out's of takeovers.  Is there anything
stopping them from making their offer unconditional on 4 Jan, picking up
probably 40-60% of the company, waiting for the arbitrage holders to
sell out and then come back to the remaining holders with a slightly
higher offer?  They pretty much have Bains shares in the bag - so why
would they want to pay more for them?

>From what I can see, they REALLY want FRU and seems to have the time to
wait to get it, throwing a bit of doubt, bad press and reverse
psychology in and it seem to be swinging things their way

MB (hold FRU)


Marilyn Munroe wrote:

> Anyone considering making an alternative offer doesn't have long.
> 
> My best guess is that no competing bidder will emerge and that on 4th Jan,
> when Danone's offer closes they will declare their offer unconditional and
> take up whatever level of acceptances they have receivied.
> 
> This will hold the blow torch to the wallets of holdouts such as myself who
> beleve that the offer does not fully value Frucor.

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