Australia: Fosters Group Limited announced on February 17 that nothing in the Targets Statement released on the same day by Southcorp Limited (Southcorp or the Company) changes Fosters Group Limiteds (Fosters) view that its $4.17 cash per share offer price is an outstanding price for Southcorp shareholders. Fosters considers that there is nothing in the Targets Statement that justifies rejection of its offer and believes the Targets Statement lacks credibility. Southcorp has not provided sufficient information to allow its shareholders to make an informed decision, specifically: Southcorps directors have not provided any valuation of the companys shares; Southcorps directors have not engaged an independent expert to provide a valuation of the companys shares; and Southcorps directors have not suggested that there are any counter bidders, Fosters said.
Southcorps directors have placed undue emphasis on their speculative estimates of potential synergies arising from a combination of Fosters and Southcorp. Southcorp shareholders can only benefit from any such synergies by accepting Fosters offer. Fosters President and Chief Executive Officer, Trevor OHoy said: Nothing in Southcorps Targets Statement alters our view that $4.17 per share is a great price for Southcorp shareholders.