COMPANY COMMENT: Make no assumptions about Sovereign deal
The next few days are going to be tense for Capitalworks as we wait to see whether or not the bird flu has been contained
It’s an indication of just how acrimonious the battle for Sovereign Foods has been that some market commentators dismissed the announcement by Country Bird Holdings (CBH) that it was walking away as a cunning ploy to stir up support from some or other entity, including Capitalworks. Few believe they are going to chicken out of the deal. But the past two years have taught us not to make assumptions when it comes to Sovereign. The next few days are going to be tense for Capitalworks as we wait to see whether or not the bird flu has been contained. There doesn’t appear to be any condition in its R12 per share offer that would allow it to walk away if the bird flu spreads. As for CBH, it doesn’t have to formally put its cards on the table until just before the shareholders’ meeting on October 9, so it has less than three weeks. That would be a bit tight if it was going to make another offer. Walking away won’t be too unpleasant an option, given that CBH stands to make a profit of about ...
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