National Foods board rejects Fonterra offer

The National Foods board today released its target statement, reiterating its recommendation that shareholders reject Fonterra's offer which it said was grossly inadequate, unsolicited and conditional.

National Foods chairman David Crawford said the board had determined a stand-alone valuation range of A$6.11 to A$6.65 ($6.68 to $7.28) per National Foods share.

Fonterra's cash offer of A$5.45 was a 12 per cent to 22 per cent discount to that range.

"In addition, the board estimated that substantial cost synergies worth over A$1.00 per National Foods share would also be available to Fonterra if it acquires 100 per cent of National Foods," Mr Crawford said.

"This additional value does not include any additional benefits that Fonterra would derive from any future dairy industry consolidation."

- NZPA