Coopers accuse LNN of desperate tactics

[Oliver]

http://www.theage.com.au/news/Business/ ... click=true

Coopers accuse LNN of desperate tactics
November 10, 2005 - 6:24PM

Takeover target Coopers Brewery Ltd is calling on the board of predator Lion Nathan Ltd to rein in its chief executive Rob Murray, after describing his tactics relating to the bid as "desperate".

Privately-owned Coopers is resisting a $352 million takeover bid from Lion Nathan - a bid that has been characterised by numerous court cases over the process by which Coopers shares are bought and sold.

"The Coopers board calls on Lion Nathan and its directors to rein in the desperate tactics of Robert Murray, including what appear to be endless and costly court applications, clear the air and let Cooper's shareholders get on with the business of considering the Lion Nathan bid and the future of their company," Coopers said in a statement.

"Sources close to Coopers have stated that they believe Lion Nathan's actions highlight what can only be described as the most desperate tactics undertaken by a bidder in an Australian takeover."

Coopers managing director Tim Cooper said he was continually surprised by the lengths that Lion Nathan was going to, to take control of Coopers.

"The level of hysteria from Robert Murray seems to increase daily," Dr Cooper said.

Dr Cooper said Coopers had been told that Lion Nathan's growth forecasts were not good and that Lion Nathan had panicked when Coopers tried to have Lion Nathan removed from Coopers' constitution.

"This is the reason why it is acting in such a desperate way," Dr Cooper said.

Dr Cooper said some sources close to Coopers had suggested that obtaining Coopers was the only way Lion Nathan could grow its beer business.

He said Lion Nathan had attacked "any person involved in this takeover battle", including Cooper's auditor KPMG over its assessments of "fair value" for Coopers shares, and the Coopers board.

Lion Nathan has been pressing for an explanation from the Coopers board over some of the share trades engaged in by some Coopers directors.

"While Coopers is inexperienced in public takeovers, we do not think this sort of behaviour is necessary or appropriate," Dr Cooper said.

Mr Murray said on Wednesday that Lion Nathan's bid for Coopers was likely to be "long, drawn-out and protracted".

Under a pre-emptive rights regime in the Coopers constitution, Coopers shares up for sale must first be offered to Coopers shareholders, then to AMP or Coopers superannuation schemes, and thirdly to Lion Nathan.

Coopers is seeking to remove Lion Nathan's pre-emptive rights. It has won a court battle allowing it to do so but must also obtain shareholder approval.

Lion Nathan has won a court injunction stopping a meeting of Coopers shareholders from taking place to consider the removal of Lion Nathan's rights.

Lion Nathan, which owns the Tooheys, Hahn and XXXX Gold brands, on Wednesday reported a 40.4 per cent jump in net profit to $224.8 million for 2004/05, boosted by a strong Australian beer business.

However, the outlook was for a period of more moderate earnings growth.

[pharmaboy]

Oliver, might find this article interesting from Crikey

http://www.crikey.com.au/articles/2005/ ... -8703.html

slightly different slant than the usual for Lion Nathan's motivations.

[NTRabbit]

The ACCC ruling was supposed to come down today, but I havent heard a single word about it all afternoon and evening.

[anti-fsck]

The ACCC ruling was supposed to come down today, but I havent heard a single word about it all afternoon and evening.

You're a day early, old bean. 'Tis here.

ACCC issues Statement of Issues on proposed acquisition of Coopers by Lion Nathan

The Australian Competition and Consumer Commission today issued a Statement of Issues on the proposed acquisition of Coopers Brewery Limited by Lion Nathan Limited.

The Statement of Issues seeks further information on barriers to entry (particularly in relation to distribution networks) and the extent to which Coopers is a vigorous and effective competitor.

The ACCC invites further submissions from the market focused on these matters by Friday, 25 November 2005. The ACCC anticipates making a final decision on the proposed acquisition in December 2005.

[NTRabbit]

The ACCC ruling was supposed to come down today, but I havent heard a single word about it all afternoon and evening.

You're a day early, old bean.

Funny, the advertiser was banging on about it yesterday