Lion Nathan outlines offer for Coopers shares

Australia's Takeovers Panel has asked Coopers Brewery and Lion Nathan to explain to Coopers shareholders how their company's share buying rights system works.

This month, Lion Nathan launched a hostile $A352 million ($387 million) takeover offer for Coopers and sent a letter to Coopers shareholders, which Coopers deemed misleading.

Coopers alleged the letter did not adequately explain that shareholders wishing to accept Lion Nathan's offer had to follow the pre-emptive rights regime. Coopers alleged the letter also did not tell shareholders they might not receive the full price offered by Lion Nathan.

The panel accepted a Lion Nathan undertaking to send a new letter to Coopers shareholders explaining the pre-emptive rights.

Coopers was given an opportunity to review the letter before it was sent.

Coopers' board has called an extraordinary general meeting for October 19. Shareholders will vote on whether to remove Lion Nathan's pre-emptive rights.