By LIAM DANN
Dairy giant Fonterra has reaffirmed its commitment to taking over Australian dairy company National Foods despite the initial catalyst for the bid no longer being a factor.
Coca-Cola Amatil - Australia's biggest soft-drink maker - yesterday confirmed speculation that it was making a bid for canned-fruit company SPC Ardmona.
It
was National Foods' plan to take over SPC that prompted Fonterra's takeover offer.
Fonterra - the largest stakeholder in National Foods - was unhappy that it was diversifying away from the dairy sector.
National Foods suspended talks with SPC on Wednesday.
Coca-Cola Amatil has offered A$500 million ($553 million) in cash and stock. Some analysts have questioned whether Fonterra remains committed to its bid now that the SPC deal with National Foods is off.
But yesterday a Fonterra spokesman said the formal offer documents were still on track to go out to shareholders next week.
Fonterra has been contemplating a takeover of National Foods for at least 18 months.
While the SPC situation may have prompted it to move earlier than planned, consolidating its position as the main player in the Australasian dairy sector remains a goal.
If there was any doubt in Australia that Fonterra remains serious, it was not reflected on market.
National Foods shares closed 3Ac down at A$5.75 - still well above the Fonterra offer price of A$5.45
