By Phil Boeyen, ShareChat Business News Editor
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Tuesday 8th January 2002 |
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Fonterra has confirmed that Westland is opposed to any merger - a response Fonterra chairman, John Roadley, says is both surprising and disappointing.
"It appears that Westland's Board have decided that Westland's shareholders will not have an opportunity to assess the offer properly before being asked to vote on it.
"We have not been asked to provide information setting out the offer in detail, nor to attend any shareholders' meeting. It is unclear whether any form of independent assessment will be made available to the shareholders."
Mr Roadley says Fonterra's offer has been made in the interests of a united and strong New Zealand dairy industry, with the benefits of scale and international market access.
More than 96% of New Zealand dairy farmers are now shareholders in Fonterra and Mr Roadley says the company has made an offer to Westland on the basis of a one-for-one share exchange.
"This would result in a merger on the same terms adopted by the 14,000 shareholders of Kiwi Co-operative Dairies and New Zealand Dairy Group when Fonterra was created in October 2001."
Under current legislation Westland can merge with Fonterra without the need for Commerce Commission approval.
"The key issue is that, unless a merger can be effected by 8 March this year, the window of opportunity will close - forever," says Mr Roadley.
"Provided a proposal was circulated to Westland shareholders by 31 January, that timeframe could be achieved."
Mr Roadley says Fonterra will be assessing its options before deciding whether to take any further steps in relation to the offer.
Over 300 Westland shareholders, who voted overwhelmingly last year to remain independent, are due to vote on the new Fonterra offer on January 16.
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