New Zealand Dairy Foods chiefs will next month hawk their company round Europe, the United States, Japan and Australia, making sales pitches to 25 companies.
Dairy Foods chairman John Storey, chief executive Peter McClure and Fonterra director Henry Van Der Heyden will first head to the US, where they are scheduled
to spend about three days making presentations to several companies which have expressed interest. They will then travel to Europe, Japan, and Australia.
Dairy Foods was New Zealand Dairy Group's domestic market subsidiary, half owned by the company (now merged into Fonterra) and half by 5000 of its North Island suppliers.
The Government required the Dairy Group stake to be sold as a condition of Fonterra's formation. The sale is designed to ensure domestic competition for Fonterra.
Dairy Foods has invited interest for 100 per cent control, even though it holds only half the shares.
The company can offer 10-year contracts with Fonterra for raw milk and other ingredients, and the rights to brands including Chesdale, Anchor, Fernleaf and Fresh 'n' Fruity.
Mr Storey said potential buyers included some big-name companies.
Meanwhile, industry insiders are sceptical about Australian reports that Fonterra is considering a takeover of National Foods, Australia's only listed dairy foods company.
The move would cost Fonterra a crippling $A1 billion ($1.2 billion), a source said.
- NZPA
