Goodman view soon

Press, 9 January 1986, Page 18

Goodman view soon

Wellington reporter The Goodman Group expects to make a formal response to the Fielder Gillespie Davis bid aimed at forming Australasia’s largest food group, after a board meeting late next week. Until then, the company has no comment on the rejection of the three-way merger proposal by the independent directors of Allied Mills, Ltd, company treasurer Mr Barney Sundstrum said yesterday. On Tuesday, the four Allied directors not connected with Goodmans or Arnotts, Ltd, rejected both the Fielder Gillespie and the Euling Pty, Ltd,

offers for the company. The four independent directors believe the Fielder offer of five of its shares for four Allied does not fully reflect Allied’s contribution to earnings, cash flow, and net assets of the proposed combined group. An independent report by Schroders Australia, Ltd, rejected both offers because it said Allied shares were worth 380 c each. However, the Schroder report has been criticised by Fielder as using inappropriate criteria to value Allied and has been outdated by the rise in

the Fielder share price to 270 c which now values Allied shares in its offer at 338 c.

“There is nothing in the Schroders report to counter our firm conviction that the shareholders of Allied Mills will benefit from this opportunity to be part of a much stronger and more efficient, profitable company,” Fielder said.

Allied directors said that the Euling offer price of sAust3.so per Allied share was too low and the 90 per cent acceptance requirement was unlikely to be met.