Shareholders deeply divided

SHAREHOLDERS in Waterford Co-op are deeply divided about the very principle of a merger with another dairy group, according to a straw poll of shareholders published in the Irish Farmers Journal

The poll was conducted by telephone among 126 Waterford shareholders last Friday when the terms of the Avonmore proposal were unknown and last Monday and Tuesday when the details of the offer had been widely publicised.

Just 51 per cent of the Waterford shareholders surveyed said that they agreed in principle with a merger, with 49 per cent opposed. If this pattern was maintained - across Waterford's 5,500 shareholders, it would make it very difficult for any merger deal to achieve the required 75 per cent approval.

A total of 55 per cent of those surveyed said they opposed the current proposal from Avonmore.

But of those who supported the merger, Avonmore was the clear favourite partner, with 77 per cent plumping for the Kilkenny co-op. Dairygold was favoured by only 3 per cent, while 20 per cent said they didn't know.

The Journal also surveyed some Avonmore shareholders, although the exact number polled by telephone was not specified. Of those surveyed, 53 per cent opposed the current proposal to merge with Waterford, with only 47 per cent in favour.

Again, any merger proposal may find it difficult to get the required 75 per cent approval, with only 60 per cent of those surveyed favouring merger with another dairy group and 40 per cent opposed to the very principle of merger.

Of those who said they supported merger with another group, Waterford was by far the preferred partner, with 83 per cent. Dairygold and Kerry were both favoured by 2 per cent of those surveyed while 13 per cent said that they didn't know.