By ELLEN READ
It's take-it-or-leave-it time for Frucor shareholders after French suitor Groupe Danone yesterday issued a final extension on its takeover offer.
Danone extended the deadline from January 4 to January 18 for its $2.35-a-share bid, which values Frucor at $294 million. The offer is conditional on receiving 90 per
cent acceptance.
Frucor's independent directors have consistently rejected the offer, saying the price is too low and that competing bids remain a possibility.
Danone managing director Simon Israel said the company was extending its offer for a final time to ensure that shareholders were not disadvantaged by the previous date, which fell during the period of the Christmas holidays.
Shares in Frucor last traded up a cent at $2.32, just below Danone's offer price.
They have dipped from a high of $2.52 struck last month.
An independent report has valued the shares at between $2.53 and $2.96.
Frucor's largest shareholder, Bain Pacific Associates, has already accepted the offer for its 37.6 per cent stake, but few other shareholders have followed suit.
John Moore of ABN Amro, which is advising Danone on its bid, confirmed that the company had not received a high level of acceptance - less than 1 per cent.
But he said this was not unusual until a finite date was put on the offer and Danone was "happy where it is at the moment".
He said that although the company retained full flexibility in its offer, it had no inclination at present to raise the price.
Forsyth Barr analyst Rowan Johnston said yesterday that he was sticking to his view that Danone would have to raise the offer price if it wanted to succeed in its bid.
