Hart has all eyes on Burns Philp

Graeme Hart

Cashed up food group Burns Philp, controlled by New Zealander Graeme Hart, appears poised to make a big acquisition, according to a report in today's Sydney Morning Herald (SMH).

Its shares were suddenly placed into a trading halt yesterday.

The Burns Philp board is to meet this morning and the trading halt, announced late in the day before the market closed, will remain in place until tomorrow or until it makes an announcement.

Burns Philp has billions in its coffers. Its spice and bakery ingredients unit was sold for $1.9 billion two years ago and Nestlé bought the Uncle Tobys snack food business for $890 million earlier this year.

Burns Philp's only remaining food assets are its New Zealand Bluebird Foods brand and a 20 per cent stake in the $2.1 billion Goodman Fielder, which was floated in December.

The company has been searching the world for suitable acquisitions, not necessarily in the food sector.

Possible acquisitions mooted in the market have ranged from packaging group Amcor to fruit group Chiquita Brands South Pacific, says the Sydney Morning Herald report.

Analysts say Amcor would interest Burns Philp because there are affinities with timber group Carter Holt Harvey, which Mr Hart controls after a $3 billion takeover.

Investment bankers are advising Amcor on a restructuring and on possible asset sales. Attention has focused on Amcor's fibre packaging business.

Analysts told the SMH that if Amcor does not sell the business to Mr Hart, he may make a hostile takeover bid and break the company up.

Amcor's shares, however, did not jump yesterday, ending 6c higher at $6.39.

Chiquita is subject to a $108 million takeover bid by Timbercorp and the Costa Group but its shares finished unchanged at 74c.

Burns Philp shares last traded at $1.005, down 1.5c.