Monday, January 24, 2011
MANAGEMENT at Greencore will be under severe pressure to resuscitate the company’s bid to take over Northern Foods after a last-minute £342 million (€401.7m) bid eclipsed the Irish company’s offer at the weekend.
British food manufacturer Northern Foods has agreed to be taken over by businessman Ranjit Boparan in a deal valuing the business at £342m, the company said on Friday. Northern Foods, the maker of Goodfella’s Pizza and Fox’s biscuits, is recommending that shareholders back a bid of 73 pence per share by Boparan and said it had withdrawn its support for a takeover by Greencore.
In a statement scheduled to be issued to the Irish Stock Exchange this morning, Greencore said its board continues to believe that a combination with Northern Foods to create Essenta Foods represents a compelling opportunity for value creation for both sets of shareholders. This, they said, can be achieved through the formation of a business with increased scale in the industry and the ability to deliver substantial synergies around which the board has increased confidence.
"Given this latest development, the board of Greencore will now consider its options and will make a further announcement in due course," Greencore said.
Greencore chief executive Patrick Coveney was set to head up the Essenta Foods group which would have a turnover of €2bn. He will be under pressure to secure the deal he and his team have identified as the way forward for the company.
It is expected that Greencore will sweeten its offer.
© Examiner Publications (Cork) Limited, City Quarter, Lapps Quay, Cork. Registered in Ireland: 73385.
