Forum Archive Index - January 2002

["andrew cottingham" <arco@adinfinitum.co.nz>]

On todays Herald
site.....http://www.nzherald.co.nz/business/businessstorydisplay.cfm?storyID
=585539&thesection=business&thesubsection=general&thesecondsubsection=&theti
ckercode=


Independent directors rush to get Frucor views out

08.01.2002 By ELLEN READ and agencies
Takeover target Frucor Beverages is again the subject of posturing and
foot-stamping as the protagonists return to their roles after the Christmas
break.

On Sunday, major shareholder Bain Pacific Associates urged other
shareholders to follow its example and accept Groupe Danone's offer.

Bain managing director Joe Pretlow said that if the offer lapsed, Frucor's
share price would fall precipitously.

Yesterday, the chairman of Frucor's independent directors committee, Ian
Donald, expressed frustration and surprise at Bain's move.

"I must say the timing of Bain's announcement took me by surprise as they
did it without any reference to us [the independent directors committee],"
he said.

"And while they were entitled to do that, it is frustrating as now we have
to rush to communicate our views to shareholders."

He said the committee would have provided information on its view of the
takeover to shareholders sooner, but was constrained because Danone could
have changed its bid up until midnight on January 4.

"Technically, we had to wait until midnight last Friday before we could
begin deliberations, and now we're busy trying to reach consensus on what
will be our final communication to shareholders about our view of the Danone
takeover bid," Mr Donald said.

Until consensus was reached, it would be "improper" to comment further.

With the deadline for changes to Danone's $2.35 a share takeover offer now
passed, that bid will stand until its January 18 expiry date.

Mr Donald said the independent directors would give investors their views on
the Danone offer before the market opened today.

Analysts say the offer price is too low and that Danone will walk away empty
handed, leaving Frucor a listed company.

The offer, conditional on receiving 90 per cent of Frucor shares, is below
the $2.53 to $2.96 a share valuation range in an appraisal report by
merchant bankers Grant Samuel and Associates.

Bain Pacific and Associates, an affiliate of Bain Capital, accepted the
Danone offer in October for its 37.6 per cent stake.

But Frucor's independent directors have advised other shareholders not to
sell, saying the offer is too low. They have instead sought a price in line
with the independent report.

Analysts say that if Danone's offer fails, Frucor shares will probably fall
immediately to about $1.80.

The shares closed yesterday at $2.30 a share, after rising 5c over the day.





----- Original Message -----
From: jerrold poh <jerm@musician.org>
To: <sharechat@sharechat.co.nz>
Sent: Monday, January 07, 2002 10:59 PM
Subject: Re: [sharechat] Frucor


> On Mon, Jan 07, 2002 at 08:58:28PM +1300, Adrian Ellingham wrote:
> > Why not accept Danone's offer?
> >
> > If they get 90% acceptances you will get $2.35 per share.  If you
> > don't and the price drops - $1.60 per share has been suggested - YOU
> > LOSE ANYWAY !
> >
> > For those who got in at issue, it is a very good profit in a year.
> > Sentiment can be expensive!
> >
> > Maybe Danone will take all acceptances at $2.35  (but less than (90%)
> > to get control.   If then the price drops significantly and the
> > company remains listed - buy back in.
> >
> > I think the French are playing a very cunning game - and will probably
> > succeed.  Maybe it's time to take the money and go.
> >
> > Comments?
>
> If you're unsure what the right thing to do is (in regards to the Danone
> offer), but still would like your $2.35, why not sell your shares on the
> market instead of taking up Danone's offer, thereby letting the real
> players who have a vested interest in the share decide Frucor's future?
>
> That way, you get your $2.35, and no bad feelings if you felt you were
> letting Frucor down.
>
> Just my 2 cents .. would you like the change :).
>
>
> Jerrold.
> disc. sold fru, for reasons outlined above.
>
>
> --------------------------------------------------------------------------
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