KEY POINTS:
The Fonterra board might be about to pull the proverbial rabbit from the magician's hat with their preferred choice for a new capital structure.
The co-operative wants to protect against farmers cashing in shares and ensure it can get the funds needed to take advantage of future global opportunities.
To do this the board needed a bold move to make a connection with the stock market and its eager investors but also a conservative approach so that farmers didn't slam the gate for fear the company would be sold out from under their feet.
The proposed solution maintains the co-operative ethos but creates a new company for the operations and assets, which would then be partially listed.
There's the bold move.
However, a listing would only happen after years of consultation and two shareholder votes, with the co-operative retaining 65 per cent ownership,15 per cent given to farmers and 20 per cent held publicly.
Special protection would include rules for non co-operative investors to hold a maximum of 10 per cent and that 50.1 per cent of stock must be held by New Zealanders.
The protections would ensure farmers stayed in control and the iconic company could not be swallowed up by some audacious foreign takeover play.
All very conservative.
Many would-be investors may shrug their shoulders at giving up the opportunity to build a big stake in exchange for the chance to buy up to ten per cent of one of the world's biggest dairy operators, and finally get some exposure to New Zealand's key economic sector.
Put it this way - a partial float could still see Fonterra become one of the stock market's largest listed companies and a small piece of a big cake is still well worth having.
Fonterra is being extra careful not to rush farmers and says it will take feedback on board and adjust the preferred choice if needed.
The company has given itself plenty of time and the softly, softly approach will quell some farmer anxiety about the change but the success of the initial pitch could still be crucial for building momentum towards the first vote expected next May.
Chairman Henry van der Heyden is confident farmers will join the board for the latest evolution of the co-operative and though he's not hitching his wagon completely to this horse he's pretty determined.
"Don't underestimate how committed I am to this outcome," he says.
Van der Heyden will be hoping he's found the winning formula - co-operative with a market listing, farmer control but external investors.
He's got his hand on its ears but will we see the rabbit.
