By Phil Boeyen, ShareChat Business News Editor
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Thursday 20th December 2001 |
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The French food and drink company's offer of $2.35 a share for Frucor was due to expire on January 4 next year but Danone has now added a further two weeks, until January 18.
Once again, no increased price has been offered. The independent directors' committee has repeatedly recommended that Frucor shareholders reject the bid because it undervalues the company, particularly in relation to the potential synergies that Danone Asia stands to gain from a takeover.
The appraisal report into Frucor values the company's shares between $2.53 and $2.96, however Danone has continually reminded Frucor shareholders that the company may take some time to meet its potential.
Frucor's independent directors have held out the carrot of a competing bid for the company but nothing has materialised to date, leaving the market to downgrade the stock to below the bid price in recent weeks after a bullish period immediately after the takeover bid was announced.
Danone appears happy to play a waiting game for the beverage company and claims its offer is already fully priced.
A further time extension shows it is keen to take hold of the company but believes that by weeding out share market arbitrageurs it will win the day at the price it wants.
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