Looking like we will have to wait until the SPC and NFD...

Looking like we will have to wait until the SPC and NFD situation is sorted before clearer path for BPC is known.

Burns Philp coy on rationalisation
November 11, 2004 - 12:04PM


Australia's largest food group Burns Philp refused to be drawn into market speculation that it was a player in the current rationalisation of the Australian food industry.

Burns Philp chief executive officer Tom Degnan told journalists on a teleconference to discuss the company's recent first quarter results that he would "talk generally about what we might do, but I'm not going to make any comment regarding any specific acquisition."

Mr Degnan's comments came within an hour of Coca-Cola Amatil Ltd requesting a trading halt on its shares pending an announcement about a transaction it is considering.

Market speculation suggests Coca-Cola Amatil is considering a $480 million bid for canned fruit producer SPC Ardmona, who suspended its shares on Wednesday.

Burns Philp owns the Uncle Toby's, Meadow Lea, Buttercup, White Wings and Praise brands via its $2 billion acquisition of Goodman Fielder in June 2003.

On Wednesday Burns Philp was also linked with a bid for SPC Ardmona, after National Foods Ltd put its SPC merger talks on hold.

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AdvertisementHowever, Mr Degnan would not be drawn into comment.

"I think if there were business we found out about that were appropriate tack-ons to anything we do - it could be in spreads, cake mixes, baking, whatever - we would definitely look at them and look at the possibility to consolidate with our business and achieve synergy and so forth," he said.

"I would not comment on any pending acquisition divestiture type things ... I don't think that is appropriate for us to do, so whether it is SPC or anyone else, I am not going to make any comment.

"If we did something along those lines and it was material, we would make an ASX announcement and then I would be available for phone calls."

There is also speculation that Burns Philp may make a counter bid for National Foods, which is fighting a takeover offer from New Zealand dairy giant Fonterra.

Fonterra already holds 17.2 per cent of National Foods and is offering $1.62 billion or $5.45 a share for the remaining shares in the company.

© 2004 AAP