By NZPA
|
Friday 17th January 2003 |
Text too small? |
Goodman also said it was in discussions with other parties "which may lead to alternative proposals for consideration by shareholders".
"Each Goodman Fielder director recommends that shareholders reject the Burns Philp offer," Goodman said in a letter sent to shareholders along with the target's statement.
"Each director of Goodman Fielder intends to reject the offer in respect of his or her own shareholding."
Goodman said Burns Philp's bid did not adequately compensate Goodman's shareholders for the underlying value of the company and its ongoing potential.
"The offer price of $A1.85 (per share) does not reflect an appropriate acquisition price for control of Goodman Fielder," it said.
"The bid is opportunistically timed given the impact of short term commodity price increases primarily caused by drought conditions."
Goodman said a new strategy implemented in mid-2001 was creating significant value and was expected to deliver further benefits to shareholders.
"In addition to the inadequacy of the Burns Philp offer price, the bid is highly conditional," Goodman said.
"The existing offer does not provide a sufficient degree of certainty for Goodman Fielder shareholders that the offer will be completed."
Goodman said other considerations included the possibility of alternative proposals "which may enhance value for Goodman Fielder shareholders".
"Your directors are also considering other alternatives in order to maximise value for shareholders, in particular the potential for rival bids," chairman Keith Barton said, writing in the letter.
"Goodman Fielder is currently in active discussions with a number of parties regarding these alternatives - your directors will keep you informed of any material developments."
Dr Barton said under the leadership of chief executive Tom Park, Goodman had significantly improved shareholder value through "disciplined adherence to its even core operating principles which have delivered a premium retail-branded focus, productivity gains and more efficient capital management".
Dr Barton said Goodman's key performance and financial indicators, economic profit and return on funds employed, were continuing to improve and represented the company's best results in recent times.
"The strategic and financial targets are on schedule," he said.
No comments yet
