Qld Cotton bidding race heats up

Tuesday, May 29, 2007

The bidding war over Queensland Cotton has intensified with Singapore-based cotton company Olam trumping a rival bid from major shareholder Louis Dreyfus.

Olam has upped its original offer by nearly a dollar a share to $5.65 - 34 cents more than the bid made by Louis Dreyfus last week.

Olam has promised to up the price again, if it gains control of the company.

Queensland Cotton chief executive Richard Haire says the board is recommending shareholders accept the new offer.

"Now they are looking at $5.65 per share, which is now an unconditional offer, because they've received the approval of the Foreign Investment Review Board and also received the Hart-Scott-Rodino approval from the United States, so it's $5.65 for the shares and if they're actually successful in getting more than 75.1 per cent, then that offer will lift to $5.90," he said.

Sourced from ABC.