The Courier-Mail

A2 Milk takeover ‘mooves’ stalled


A2 MILK yesterday hosed down takeover spec­u­la­tion about the dual-listed dairy foods group.

The com­pany, which is listed on the Aus­tralian and New Zealand share­mar­kets, yesterday said “no takeover of­fer is im­mi­nent” af­ter US-based Dean Foods and Aus­tralia’s Free­dom Foods stopped talk­ing about their pro­posal.

Dean Foods and Free­dom Foods, which is a ma­jor sup­plier to and share­holder in A2, put for­ward an ex­pres­sion of in­ter­est to buy the com­pany in June for an undis­closed amount.

They were knocked back by A2’s board, which said the deal was not com­pelling enough and talks had since stalled.

Last month, A2 said it had not re­ceived any­thing more on the bid.

ASX-listed Free­dom Foods said it had “ceased de­tailed dis­cus­sion in re­la­tion to A2” with Dean Foods and was re­view­ing its 18 per cent hold­ing, “in­clud­ing eval­u­at­ing the ben­e­fits of main­tain­ing a strate­gic stake”.

A2’s Aus­tralian­listed shares closed down 1¢ at 62.5¢ yesterday, while Free­dom Food’s shares rose 3¢ to $3.

“Although there has been no for­mal with­drawal, the board con­tin­ues to con­sider that no takeover of­fer is im­mi­nent,” A2 said.

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