GPG ups offer for farm firm but Tandou board fends off deal

Guinness Peat Group has upped its offer for listed Australian farm and orchard company Tandou, whose directors continue to rebuff Sir Ron Brierley's investment vehicle.

Yesterday, GPG announced it would pay A33c a share for all of Tandou's shares as its previous A30c-a- share bid for 50 per cent expired.

GPG's earlier offer, which was open for four months, had secured acceptances of less than 0.8 per cent, Tandou's board said yesterday.

The Tandou board recommended shareholders do nothing until they received a Target's Statement, but it also urged shareholders to reject the offer as it represented a significant discount to the company's underlying fundamental value, which the board puts at A64c to A68c a share.

GPG holds 20.67 per cent of Tandou's stock.

The Mildura, Victoria, company's primary assets are a 79,000ha cotton, wheat, barley and grazing farm and a 5350ha orchard growing stone fruit, citrus and wine grapes. Tandou's farming operation has been beset by drought for a number of years.

Should its offer succeed, GPG said it intended to review the company's assets and operations. GPG expects to sell, restructure or close horticultural and other activities not producing an economic return.