Cham Foods (Israel), a manufacturer of powdered eggs and ingredients for the food industry, signed through its US subsidiary Primera Foods a Letter of Intent with Golden Oval Eggs from Minnesota.

Michael Shevy, president and CEO of Cham Foods, told that previous reports in the press “misinterpreted our statement to the Tel Aviv Stock Exchange,” which states that Cham plans to merge with Golden Oval Eggs, “as the Letter of Intent signed with Golden Oval Eggs does not bind any side, except that the signatories to the Letter cannot conduct with other parties until 31 March 2003 any negotiations aimed at either merging or acquisition.”

Shevy added that Primera Foods and Golden Oval Eggs have participated in commercial relations since 1994 and that recently the companies decided to “examine the possibility for establishing a closer business cooperation.”

Cham Foods recently signed an agreement to supply 75% of General Mills’ needs for powdered eggs, primarily for Pillsbury.