By ELLEN READ and AGENCIES
Fresh from snaring Frucor Beverages, Groupe Danone was yesterday named as a likely suitor for the Fonterra offshoot New Zealand Dairy Foods.
Australian media reported that Danone would pursue due diligence on Dairy Foods.
Dairy Foods chief executive Peter McLure would say only that there were five potential
bidders.
Danone's executive vice-president for Asia-Pacific, Simon Israel, said the company did not discuss merger and aquisition activity until there was something to announce.
Fonterra is selling its half-stake in Dairy Foods, the maker of Anchor milk and cheese products and Fresh 'n Fruity yoghurt, to satisfy regulators.
Dairy Foods controls about 40 per cent of New Zealand's domestic dairy produce sales.
ABN Amro, which is advising on the sale, also refused to comment.
The other three companies reported to be reviewing Dairy Foods' finances are National Foods, 18.2 per cent owned by Fonterra and the only publicly traded Australian dairy company; Great Milk Company, owned by New Zealand farmers; and Dutch company Friesland Coberco Dairy Foods.
The identity of the fifth bidder has not been made public.
Preliminary bids were due last month and the sale must be completed by October to satisfy the regulators.
Auckland-based Dairy Foods was valued at as much as $270 million in March 1999 by PricewaterhouseCoopers.
It had assets of $169.8 million and $50 million in shareholders funds as of May last year.
