BPC burns, philp & company limited

check this out from egoli

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    just some more info that mightexplain the bpc share price movement

    Burns Philp launches $2.2bn Goodman Fielder takeover
    13-December-2002
    Australian food company Goodman Fielder (GMF) halted its shares this morning after ingredients group Burns Philp (BPC) announced its intention to make a takeover offer. Burns Philp is 57%-owned by New Zealand billionaire entrepreneur Graeme Hart.

    "Goodman Fielder has this morning been advised by Burns Philp that it intends to make a takeover bid for hte company," said Goodman in a statement to the ASX.

    Goodman said the bid was unsolicited and advised its shareholders to do nothing at this stage pending further details.

    It is not known at this stage if the offer will be for all of Goodman Fielder or just parts of it.

    Reports this morning indicate that Burns Philp has kick-started its offer by launching a $325 million raid to quickly take a significant slice of the company.

    According to the AFR CSFB last night approached fund managers on both sides of the Tasman with a $1.85 per share offer to buy 176 million shares, or nearly 15% of the company.

    The all-or-nothing offer represented a premium of 24% to yesterday’s close of $1.49 on the ASX. Although Goodman Fielder shares have not traded at that level for more than 4 years, it is still not clear if CSFB filled the order with some major fund managers reported to still be finalising their decision late last night.

    The report also said that Graeme Hart had spent $50 million converting 250 million options in Burns Philp shares although it is not known if this was to bolster his stake in the group or to help it buy the Goodman Fielder shares.

    Burns Philp is capitalised at $433 million compared to Goodman Fielder's $1.8 billion. At the reported offer price to fund managers, the bid is worth $2.2 billion.

    Hart made his name in the Australian market by buying and turning around the failing Burns Philp conglomerate after it made a near-disastrous foray into the North American herbs and spices business.

    Goodman Fielder has struggled in recent years with its upstream and downstream integration, but recently pursued a program of building the value of its brands which include Uncle Toby’s, Meadow Lea and Country Cup.

 
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