Waterford seeks clarification of terms

WATERFORD Co op has sought clarification from Avonmore Coop on virtually every aspect of the Kilkenny group's takeover offer. The decision was taken after a hour meeting of the co op board in Dungarvan yesterday.

A spokesman for Waterford would not go into detail on the additional information being sought, but it is understood that Waterford's advisers, NCB Corporate Finance, last night submitted a long list of required clarifications to Avonmore's advisers, IBI Corporate Finance.

Clarification is being sought on virtually every item in the Avonmore proposals, including milk price, financial structure, representation and trading relationships.

The spokesman said that Waterford Co op shareholders were "irritated" at the manner and the timing of the Avonmore takeover offer. A series of local committee meetings in the past week is understood to have generated a great deal of opposition to the very principle of becoming a minority partner in an enlarged Avonmore Waterford Co op.

"Things have calmed down now and there is a great unity of purpose on the board," the spokesman added. He said that no timescale had been put for a reply from Avonmore and IBI Corporate Finance on the clarifications being sought but it is understood that Waterford would hope to have a response within a week to 10 days.

A spokesman for Avonmore welcomed the continued contact between the two co ops and added that Avonmore and IBI would study the Waterford clarification request in detail.

The Waterford Foods chief executive, Mr Matt Walsh, said on local radio before the meeting that every aspect of the proposal was being examined. "When it is fully, considered, the co op board will decide what to do and the members will be fully informed," he said. "The matter is being treated with the seriousness and attention it deserves."

Board members declined to be interviewed on the proposed deal and the media were denied access to the headquarters building. However, one board member who left the meeting early said that no vote would be taken on the Avonmore proposition at yesterday's meeting.

As the board meeting continued until 7.30 pm. last night, the Waterford county executive of the ICMSA began an emergency meeting elsewhere in the town to discuss the proposed merger.

A meeting of Waterford IFA members who are milk suppliers to the Waterford group was held on Thursday night and the indications were that farmers were generally opposed to the merger, according to the IFA county chairman, Mr Jim Coughlan.

"The reaction of farmers at our dairy meeting last night was one of great concern at the situation we find ourselves in," Mr Coughlan said yesterday.

"The general consensus was that this offer must be rejected. We have a good co op here in the county and a network that has made a profit, and farmers are concerned at the prospect of being a junior partner in a bigger situation."