E-Malt.com News article: 4246
Australia: Foster’s Group Limited announced on February 17 that nothing in the Target’s Statement released on the same day by Southcorp Limited (“Southcorp” or “the Company”) changes Foster’s Group Limited’s (“Foster’s”) view that its $4.17 cash per share offer price is an outstanding price for Southcorp shareholders. Foster’s considers that there is nothing in the Target’s Statement that justifies rejection of its offer and believes the Target’s Statement lacks credibility. “Southcorp has not provided sufficient information to allow its shareholders to make an informed decision, specifically: Southcorp’s directors have not provided any valuation of the company’s shares; Southcorp’s directors have not engaged an independent expert to provide a valuation of the company’s shares; and Southcorp’s directors have not suggested that there are any counter bidders”, Foster’s said.
Southcorp’s directors have placed undue emphasis on their speculative estimates of potential synergies arising from a combination of Foster’s and Southcorp. Southcorp shareholders can only benefit from any such synergies by accepting Foster’s offer. Foster’s President and Chief Executive Officer, Trevor O’Hoy said: “Nothing in Southcorp’s Target’s Statement alters our view that $4.17 per share is a great price for Southcorp shareholders.”
19 February, 2005