KEY POINTS:
Fonterra chairman Henry van der Heyden is keeping quiet on reports the company is bidding for Australian co-operative Dairy Farmers.
A media report yesterday said Van der Heyden could not comment on whether Fonterra had made a bid because of a confidentiality agreement.
But he was quoted as saying the fact he was bound by confidentiality should provide the answer.
The Australian co-operative, which is owned by 2000 farmers and processes one billion litres of milk each year, has started evaluating interest from third parties to either acquire, merge or enter into a joint venture.
A deal for Dairy Farmers could be worth between A$800 million and A$1 billion.
Dairy Farmers has not named the parties involved, which are understood to include Parmalat, Saputo and National Foods.
Fonterra is in discussion with its farmers about a capital restructure of the co-operative.
"We don't put cash aside but we have got a strong balance sheet that we can use for acquisitions," Van der Heyden said.
The chairman was flying to China yesterday with the Government for the signing of a historic free-trade agreement. Fonterra did not yet know the terms of the agreement.
But Van der Heyden said: "It'll be a positive move it's just how positive is it going to be."
