Bel­lamy’s boss backs takeover

Mercury (Hobart) - - NEWS -

THE chair­man of Tas­ma­nian baby food man­u­fac­turer Bel­lamy’s has rec­om­mended share­hold­ers sup­port the pro­posed $1.5 bil­lion takeover by Chi­nese dairy com­pany Meng­niu.

In a let­ter in the com­pany’s scheme book­let re­leased to the ASX, John Ho raised con­cerns about Bel­lamy’s con­tin­ued reg­is­tra­tion in China and tam­per­ing of the prod­uct.

“De­spite main­tain­ing ex­ten­sive and high-qual­ity con­trols across the sup­ply chain, the Bel­lamy’s brand and rep­u­ta­tion are ex­posed to ma­te­rial ero­sion from ac­tual or per­ceived con­tam­i­na­tion, soilage or other al­ter­ation, prod­uct mis­brand­ing or tam­per­ing,’’ he said.

Share­hold­ers will meet in Mel­bourne on De­cem­ber 5.

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