Goodman bidders look to offer lower price

Goodman bidders look to offer lower price

By John Durie -The Australian

The move puts the Goodman board in a difficult position, because having agreed to accept a 71c a share bid the board knows if Wilmar walks away the stock price will slump to 40c a share.

Wilmar and First Pacific are attempting to negotiate a lower offer price for Goodman Fielder which has forced the target company into a trading halt.

It is understood the board has no plan to issue a profit downgrade but, as with Treasury Wine Estates, word of the offer would have increased retailer pressure on the company.

Alan has been a trusted source of investment advice to Australians for many years, and in 2005 he founded Eureka Report - Australia’s #1 online investment report.

The bidders had agreed to pay 71c a share subject to due diligence but are now arguing, after looking at the books, the bid is too high and they want to stick to a lower price of below 70c a share.

Along with Robert Gottliebsen and Stephen Bartholomeusz, Alan also founded Business Spectator, the popular business news and commentary website.

Read more here: Business Spectator


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