POULTRY MERGER Country
Bird holds out for Sovereign
CBH’s latest announcement highlights the litigious nature of the poultry producers’ deal
Country Bird Holdings (CBH) will not take a takeover special committee’s decision on review until Sovereign Food’s application to the Competition Commission has been finalised. In a Sens announcement issued on Friday, CBH said it "is firmly of the opinion that the Sovereign application has no prospect of success and that the CBH offer still has the potential to be implemented". The announcement highlights the litigious nature of a deal that has been on the cards for more than a year but has been dogged by one legal challenge after another as Sovereign battles off its unwanted suitor. In November, Sovereign filed a review application with the Competition Commission in a bid to get the watchdog to set aside an earlier decision that a merger between Sovereign and CBH would not be anticompetitive. A month earlier, a special committee of the Takeover Regulation Panel ruled, in response to an approach by Sovereign, that CBH’s R9-per-share cash offer to Sovereign shareholders had lapsed on...
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