Dairy Foods denies sale to San Miguel

Dairy Foods chairman Graeme Hart today denied reports the company has been sold to Philippine foods and beverage company San Miguel.

Citing unnamed sources, the Dominion Post today reported San Miguel had beaten Swiss multinational Nestle to buy Dairy Foods.

But in a statement to the stock exchange this morning Mr Hart said neither Dairy Foods or any part of its business had been sold.

The statement went on to say various parties were considering buying Dairy Foods and were conducting due diligence.

"There can be no certainty as to the outcome of these discussions and the company will make further announcements as appropriate," Mr Hart said in the statement.

Meanwhile, San Miguel looks set to gain control of Australian dairy company National Foods after Fonterra today announced it was pulling out of the race.

Last week San Miguel lifted its bid for National Foods to A$6.40 ($6.96) a share for the company, trumping Fonterra's A$6.20 a share bid.

- NZPA