I hear the Scweppes deal is very much over the line but if that is the case then it is probably not National Foods, it is more likely to be P&N Beverages or Suntory. My money is on Suntory at this stage due to the high profile of the Lion Nathan Deal with CCA.

What might be holding up the deal is the renegotiaion of the Pepsi bottling agreement with Cadbury Schweppes.  The new buyer would prefer this agreement in the deal to give access to the volume for distribution savings.

Any News?

Tim

Heinz have offered a 313% premium to the companies last traded price of the stock on the NSE. This should prove very attractive to the owners who are fruit and vegetable growers in the majority. Their main concern will be security of supply agreements with the entity under Heinz.  Heinz managing director, Peter Widdows gave this assurance yesterday, as reported in the Herald Sun;

“Our desire is to maintain contracts between growers and Golden Circle, which would benefit from potential increases in volume over time as the combined sales and marketing strength of a combined Golden Circle and Heinz is realised.”

The offer price by Heinz at $1.65, is significantly higher than the 30% stake taken by Anchorage Capital ($0.80) last year and the bids by Coca Cola Amatil and P&N Beverages ($1.00 & $1.05) around that time. The may be another interested party but at this stage they have failed to show their hand.

Tim