By Phil Boeyen, ShareChat Business News Editor
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Monday 14th January 2002 |
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Acceptances for the $2.35 a share bid began creeping up last week after Frucor's independent directors reversed their previous don't sell advice and recommended shareholders now accept the Danone price.
The change of heart came after an updated appraisal report suggested Frucor's shares were worth between $2.38 and $2.80 per share. This was down from the previous price range of between $2.53 and $2.96 on the back of lower than expected growth in the Australian energy drink market.
In light of the new market information the updated report described Danone's price as unfair but reasonable, given that there was no competing bid.
Danone says it now holds acceptances for 44% of Frucor shares, including the 37% owned by Australian group Bain Pacific and Associates who took up the offer immediately after it was made public last October.
Danone's executive vice-president for Asia-Pacific, Simon Israel, said last week that he expects the acceptances to gain momentum this week.
There is little doubt that Danone will snare a majority holding but there are still divided views on whether it will reach its goal of 90% acceptances, after which it can move to compulsory ownership of the New Zealand beverage company.
Danone can choose to waive the 90% acceptance condition until 14 days after the offer has closed but has continually stated it wants all of Frucor and sees some difficulties in trying to grow the business without full ownership.
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