By Phil Boeyen, ShareChat Business News Editor
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Tuesday 15th January 2002 |
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Danone issued a statement to the market after trading closed on Tuesday showing it had received acceptances for 68.6 million shares representing 54.89% of Frucor's stock. Frucor has a total of 125 million shares on issue.
Although the number of acceptances pushes Danone to a majority holding it still needs another 35% of shareholders to take up its bid to reach its 90% takeover condition.
If that does not happen the French company can waive the condition and settle for a position as majority shareholder.
There could well be a rush of acceptances in the final few days although enough investors may have decided to hold onto their stock to pip Danone from a compulsory takeover.
It has now been just over a week since Frucor's independent directors recommended shareholders accept the offer, even though it is three cents below the bottom valuation range of $2.38. An updated appraisal report into the takeover bid described Danone's price as unfair but reasonable.
Danone has warned that investors who hang onto the stock in the hope that Danone will settle for a majority holding could be in for a bumpy ride as the company changes Frucor's risk profile.
However that may be a risk worth taking if Frucor can manage to tap into the huge potential of markets like Indonesia and China where Danone is already a leading player.
Danone's offer closes at 5pm on Friday, January 18.
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