Blog: Dean BestThe bun fight at Inter Link Foods

Dean Best | 22 May 2007

The talks over the future of struggling UK baker Inter Link Foods are turning ugly.

This afternoon, Inter Link issued what was effectively a “put up or shut up” ultimatum to its potential suitor, the Irish food group McCambridge.

Inter Link’s rebuttal came just hours after McCambridge, which is the company’s second-largest shareholder, handed out its own threat, revealing that it is mulling whether to cool its interest in Inter Link.

The crux of the matter here is the signing (or not as is the case here) of a confidentiality agreement that would govern the rules under which McCambridge can look at Inter Link’s books.

Inter Link has insisted that McCambridge signs the agreement; McCambridge has accused Inter Link of “unreasonably” blocking access.

Inter Link, which is looking to turn around its business after a woeful 12 months, has every right to demand McCambridge’s signature before allowing the company to conduct due diligence. After all, McCambridge is a competitor and Inter Link would be shooting itself in the foot were it to allow a rival free access to its financial data.

With its threat this morning, McCambridge seems to be the “unreasonable” party, unfairly cranking up the pressure on an Inter Link board, which is facing the twin demands of reviving the company while placating nervous investors.


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