New twist to Goodman Fielder takeover
AUSTRALIA’S food giant Goodman Fielder is subject to a takeover after Burns Philp, a yeast and ingredients manufacturer, made a $2.2 billion bid for the company.In a double whammy for the makers of popular food products such as Uncle Tobys, the company revealed a potential $102 million tax bill which could hinder the takeover from Graeme Hart’s Burns Philp group, who imposed a key condition that the forecast financial accounts of the company were correct.
Goodman Fielder also announced yesterday it could owe $392 million to institutional investors in the US if the takeover proves successful.
The shock financial revelations come a day after Goodman Fielder’s chairman, Keith Barton wrote to shareholders advising them to “to delay making any decision in relation to this offer until your Board has had time to evaluate it thoroughly.”
According to The Herald Sun, a Burns Philp spokesperson said it was too early to say what the tax liability or loan repayments would mean for the takeover bid.
The news sparked a share price drop for both companies. Goodman had 6 cents knocked from its $1.72, while Burns Philp was down 1 cent to 51 cents.