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Frucor wants more from Danone

Evian
Frucor's French suitor Danone is best known for its Evian water  


By CNN's Geoff Hiscock
Asia business editor

WELLINGTON, New Zealand (CNN) -- The takeover struggle for New Zealand's largest juice company Frucor Beverages continued Friday with its independent directors again calling an offer from French food group Danone "inadequate".

Danone launched a $123 million (NZ$294 million) full takeover bid for Frucor on October 24.

This week it extended for a second time the bid's acceptance date, pushing it back another two weeks to January 18.

Frucor's independent directors want a higher price, but admit a competing bid from any of the other parties the company's advisers have been talking to is unlikely.

"None of these discussions are currently continuing," the independent directors said in a letter to shareholders released to the New Zealand Stock Exchange Friday.

"While a competing bid cannot be ruled out, at this stage the (Independent) Committee considers a competing bid to be unlikely," they said.

Below valuation range

Danone is offering NZ$2.35 (about $0.98) a share, which is below a valuation range of NZ$2.53 to NZ$2.96 prepared for Frucor by an independent expert.

Frucor shares closed Friday at NZ$2.31, down 1 cent or 0.4 percent on a day when the broader market added about 0.4 percent.

Frucor is New Zealand's largest juice company and was named one of the world's 20 best small companies by Forbes magazine in October.

Danone, best known for its Evian water, said when it launched its bid on October 24 that it wanted to develop its Australasian presence and enter the energy drink segment.

Frucor sells V energy drink and Fresh-Up fruit juice in a number of countries, including New Zealand, Australia, South Africa and the U.K.

Frucor's U.S.-based majority shareholder Bain Pacific Associates, which holds a 37.6 percent interest, has entered into a conditional acceptance agreement with Danone at the offer price.

But the independent directors said Danone had failed to attract "any significant acceptances" beyond this.

They repeated their recommendation that shareholders not accept the Danone offer.



 
 
 
 


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