Frucor appraisal due mid-November

A number of analysts claim the offer is at the low end of expectations despite being a significant premium to last year's issue price of $1.50.

Frucor says three independent directors have been appointed to a sub-committee to advise shareholders and noteholders on the takeover bid, and the committee has appointed Credit Suisse First Boston as its financial advisor.

Grant Samuel and Associates has been commissioned to undertake an independent appraisal of the offer, with the report due to be released sometime in the middle of November.

Sub-committee chairman, Ian Donald, says the directors will not be making any comments on the merits of the Danone offer until it receives the appraisal report.

"Once we have analysed the findings of the report, we will make a recommendation to shareholders and noteholders."

Mr Donald says shareholders should refrain from making a decision at least until the independent sub-committee recommendation is made available.

While Danone is considered an excellent partner for Frucor because of strong distribution in Asia and Europe and access to capital, there are concerns that the offer price does not recognize the company's growth potential in Britain for its energy drink, V.

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