Fonterra relooking at options

Fonterra is telling its farmers it is taking another look at some discarded capital structure options.

Fonterra chairman Henry van der Heyden confirmed that the preferred listing plan option had been put to one side and the discarded options were being reviewed, The Dominion Post reported today.

Last month Fonterra axed a May vote on folding the co-operative's assets into a corporate subsidiary because farmers threatened to veto the move as a protest against plans to later bring in outside shareholders.

In both the now-axed vote on splitting the company, and the main vote in two years time on selling 35 per cent of the company's shares to individual farmers and outside investors, Fonterra's constitution requires a 75 per cent majority approval.

At the time Mr van der Heyden said much more time was needed in consultation and discussion before a final deciding vote in 2010.

A series of meetings with farmers began last Thursday and continues until the middle of this week.

- NZPA