By PHILIPPA STEVENSON
Agriculture Minister Jim Sutton will meet Fonterra chairman John Roadley today as shareholders await fresh revelations about the way the company is run.
A spokeswoman for the minister said the meeting was not called to discuss the sudden resignation of independent Fonterra director Mike Smith, whose four-month term
with the company ends tomorrow.
Last week, Mr Smith said he feared Fonterra's performance would be compromised unless it made changes to the way it was run. Mr Sutton and Mr Roadley spoke by phone about Mr Smith's departure last week.
The spokeswoman said Mr Roadley sought today's meeting about two weeks ago to discuss "dairy issues".
She could give no more details.
One discussion topic is likely to be the valuation of the Dairy Board, which is being disputed by Fonterra as too high, and by the two independent companies, Tatua and Westland, as too low.
Mr Sutton appointed Macquarie Bank to value the board, whose assets pass to the two remaining shareholders and Fonterra following the formation of the mega co-op last year.
At the present valuation of $3.31 a share the two companies stand to get $110 million, or $84 million for Westland and $26 million for Tatua.
The payment comes at the expense of Fonterra.
When the big company made its second bid for Westland last month, chairman Ian Robb suggested that Fonterra might be reluctant to part with the money.
Westland shareholders unanimously rejected the offer.
Three arbitrators will decide the matter.
Fonterra directors next week will attend a two-day workshop on running a company.
