Australia Market Wrap
$7.6bn Takeover Bid for Coca-Cola Amatil has deficiencies
Lion Nathan (ASX:LNN) is offering $6.15 and 0.469 Lion Nathan share per share for every Coca-Cola Amatil (ASX:CCL), and giving shareholders the option to accept more or less cash or shares.
Based on Lion Nathan's closing share price on November 14 of $8.95, the proposal represents $10.35 a share - a 25 per cent premium to Coca-Cola Amatil's closing share price that day of $8.25.
In early trading today, Coca-Cola Amatil shares were at $9.54, up 15% - earlier climbing to a record high of $12.00. Lion Nathan shares were placed in a trading halt earlier today pending an announcement on media speculation of merger talks between the companies.
Shares of Coca-Cola Amatil, which is 30 per cent-owned by US-based Coca-Cola Inc, rose nearly 20 per cent on the news to hit a record high.
However, Coca-Cola Amatil said the proposal, received on November 7, was "incomplete and non-binding". It said group's board had reviewed the offer and believed there were a "number of material deficiencies" and could give no assurance that the deal would proceed or be supported by its major shareholder, Coca-Cola.
Coca-Cola Amatil did not say no to the bid, as a combined entity could unlock significant synergies in distribution and overheads.
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