It certainly has some floggers out there touting a...

It certainly has some floggers out there touting a whole-of-company sale, which just wont happen. You have to laugh at Bell Potter trying to get a piece of the action by pushing out an opinion piece to its clients and anyone else that wants to read it. Am sure Kidder Williams find the material amusing to say the least.

If nothing else at least the current round of media speculation and market flogging will give everyone some indication as to the reduced value of MGC and it will result in an asset strip and sell off of non-core and non-critical assets early to mid next year and then they will go into the new season operating on a reduced milk intake basis with some remaining key processing assets and a retained set of brands.

Any offers that are teased out of the current list of buyer suspects for MGC will be well short of what the suppliers owners will want for their shares above and beyond incurred costs for cleaning up the hybrid mess including the delisting from the ASX and removing one way or the other the listed units, ending the STP and terminating its existence and then secondly whatever guaranteed undertaking they will want on top of that for their milk supply with a no penalty exit clause.

It will only take 10% of current suppliers/shareholders to block any proposed sale and that is broadly around 250m litres of milk supply. Not much to end the sale aspirations.