New Zealand dairy producer Fonterra said is has been offered a further NZ$0.05 (US$0.02) per share by Rank Group, which wants to acquire NZ Dairy Foods.
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The new comes as Fonterra is trying to face down a rebellion among farmers angry at the price it has already accepted for NZ Dairy Foods from food magnate Graeme Hart – NZ$1.7 per share, valuing the group at NZ$119m.
A farmers collective GMC (Great Milk Collective) is arguing that 6200 farmers owned half the shares in Dairy Foods. GMC had bid to buy out Fonterra’s shares and exercise farmer control of Dairy Foods. The group had matched the offer from Hart’s Rank group, but Fonterra said “other conditions” favoured Rank’s bid.
Today [Thursday] Fonterra announced that Dairy Foods chairman John Storey, had managed to sting Rank for an extra 5c/share.
“In order to win the support of the 6200 shareholders who have a choice over whether to sell, Rank have decided to slightly increase their offer from NZ$1.70 a share to NZ$1.75,” Fonterra’s chief financial officer Graham Stuart said.
