re: futuris/looks like market expectations From todays AFR:AWB...

re: futuris/looks like market expectations From todays AFR:
AWB ready to move on Futuris
Apr 15
Cathy Bolt

Grain marketer and financier AWB has taken a crucial step towards
launching a takeover bid for Futuris Corporation by submitting an
application yesterday to Treasurer Peter Costello to take its existing
14.2 per cent shareholding beyond 15 per cent.

The application followed a 9 per cent rise in Futuris's shares last
week to $1.57, including a 7¢ jump on Friday, as speculation intensified
AWB was about to launch a bid for the farm services and automotive
group. The stock closed unchanged yesterday, capitalising Futuris at
just over $1 billion.

An AWB spokesman, Peter McBride, confirmed it had submitted the
application, required because Futuris holds a banking licence through
its Elders Rural Bank joint venture with Bendigo Bank. But he declined
to comment on the bid rumours.

"At the end of the day, it's about keeping our options open," he said.

AWB built a 14.9 per cent stake in Futuris between November and
February, but it was diluted after Futuris issued 31.8 million new
shares at $1.44, equal to about 5 per cent of the company, to
Indonesia's Salim Group, a major buyer of Australian wheat, as part of a
new alliance.

A UBS Warburg analyst, Owen Evans, said yesterday he believed a $1.80 a
share cash offer from AWB would be sufficient to secure Futuris, given
it had hit a year low of $1 in October just before AWB confirmed it had
taken a strategic stake.

"Without AWB they would still be $1.20," he said.

Mr Evans said he thought it unlikely AWB would launch a scrip bid for
Futuris, given it had a significant amount of underutilised capital.

Meanwhile, both AWB and Futuris' earnings prospects for 2003-04 have
been bolstered by further good planting rains across key areas of
Australia's grain belt in the past week.

Brian Bailey, principal of independent consultancy Australian Wheat
Forecasters said yesterday he was forecasting the national 2003-04 wheat
harvest at a record 26.1 million tonnes, up from last season's
drought-hit 10.4 million tonnes.

toscanunan