No resolution to PGG Wrightson, Silver Fern Farms talks

PGG Wrightson is still in talks with Silver Fern Farms over its failed deal to buy half of the meat processor co-operative, a week after missing its deadline.

The two parties agreed to appoint a High Court judge to mediate last month after they were unable to reach a solution between them. At the time PGG Wrightson said the process would conclude by April 18.

Yesterday, a spokesman for Silver Fern Farms confirmed that a resolution had yet to be reached. "We are in continuing discussions."

He said the April date had been set as a rough guide, but there was no line in the sand as to when mediation talks had to be completed by.

"But from a general position sooner rather than later favours us."

PGG Wrightson chief executive Tim Miles could not comment on whether an agreement had been reached.

Wrightson defaulted last year on an offer to buy a 50 per cent shareholding in Silver Fern for $220 million, when it could not pay the $145 million first instalment.

In March, Wrightson said it would offer $10 million to resolve claims resulting from the failed merger bid but the move was labelled unacceptable and antagonistic by Silver Fern Farms.

Tyndall Investment Management fund manager Rickey Ward said the delay could be read either way.

"Either way it is not resolved," he said. That created uncertainty around the cost to PGG Wrightson.