E-Malt.com News article: 4146

The Philippines: San Miguel Corp., Southeast Asia's largest food and beverage group, announced on February 3 it remained interested in buying 40 % of Del Monte Pacific Ltd. (DMPL) from bankrupt Italian food group Cirio. Chinese-Filipino tycoon Lucio Tan -- one of the region's richest men -- is also bidding for the stake worth about $180 million in the Singapore-listed fruit and juice producer, according to Reuters.

"San Miguel Corp's interest to purchase Del Monte Pacific Ltd. continues and its bid remains outstanding," it said in a statement to the stock exchange after a local newspaper reported its board had decided not to pursue the deal. Cirio said last month Italy's trade ministry had authorised it to sell the 40 percent of Del Monte to Tan's Basic Holdings Corp, which put in the best bid.

But no definitive deal has been signed and the Lorenzo family of the Philippines, which owns about 20 percent of Del Monte, was quoted as saying it will exercise the right to match the best offer for Cirio's stake.

Administrators of Cirio, which is being liquidated after investors rejected a restructuring plan, are looking at selling some of its assets to allow it to repay debt.

The Italian firm defaulted on more than 1 billion euros ($1.3 billion) worth of bonds in late 2002.

San Miguel also launched a $1.4 billion bid in December to buy all of Australia's National Foods Ltd. , as it seeks new markets after dominating Philippine store shelves with its brands of beer, liquor, soft drinks, processed food and poultry.

San Miguel's A-shares , restricted to local investors, were down 1.50 pesos or 2.59 percent at 56.50 pesos on Thursday. Its B-shares , open to all investors, were 50 centavos or 0.65 percent lower at 76 pesos.


05 February, 2005