By PHILIPPA STEVENSON
Bonlac Foods is prepared to form alliances with other Australian companies but not before a decision on a proposed deal with the New Zealand Dairy Board.
Two other major Australian dairy companies - National Foods and Murray Goulburn - have said they plan to make a cash bid for
Bonlac's consumer goods and ingredients businesses.
But Bonlac's managing director and chief executive, Alex Sloan, said that the approach consisted of a letter received last week which did not contain any details of price, terms or conditions.
It could not be described as an offer, he said.
Mr Sloan said arrangements between Bonlac and the board required either party to obtain the other's approval before holding strategic discussions with any other party.
The board was not prepared to provide that consent given the advanced state of the deal. A meeting of Bonlac shareholders to vote on the alliance, in which the board would take a 25 per cent share of the company, is scheduled for April 23.
Bonlac chairman Bill Hill said he was confident shareholders would recognise the strength of the transtasman alliance and would support it in the absence of an alternative, formal offer that was superior.
"No such alternative exists today," he said."We have always said that once the alliance is in place, there will be further opportunities for Bonlac to form commercial relationships as the Australian dairy industry consolidates.
"Nothing in the alliance would preclude this involving either Murray Goulburn or National Foods."
