'No' call over higher offer

By Dita De Boni

Ernest Adams chairman Michael O'Neill claims the company has "turned a corner," and has urged shareholders to reject Goodman Fielder's revised takeover offer of $2.35 a share.

Goodman Fielder has bumped up its bid from $2.30 to $2.35 to meet the lowest fair value set by independent appraisers Grant Samuel - the highest being $2.65. But Mr O'Neill believes "disappointing results are behind us" and told the Busienss Herald that in five years the company's share price would be "far higher than $2.65."

Institutional directors, including Gourmet Direct International and Tower, hold nearly 80 per cent of Ernest Adams and were willing to sell at $2.30 a share, but Mr O'Neill said it "wasn't a question of just following the wishes of a major shareholder."

Ernest Adams shareholders have until 10 days after their AGM on September 1 to respond to the offer.