News that Kerry Group has made an approach to Golden Vale was the main feature on the Dublin market today. Despite Golden Vale’s subsequent 38 per cent surge, the ISEQ closed 64 points lower in line with thae weak international trend.
In a statement to the stock exchange Golden Vale confirmed it had been approached by Kerry but had rejected an offer. Kerry shares fell 19 cents to euro 13.51 this afternoon.
Kerry offered to buy Golden Vale for euro 1.37 per share. Under the terms of the deal, shareholders in the takeover target will be offered cash or 1 Kerry share for every 10 in Golden Vale.
Details of the bid proposal came hours after Golden Vale revealed it had rejected an initial approach from Kerry, which it described as "inadequate".
Kerry, which already owns 37 per cent of Golden Vale, said it would be seeking to get the deal recommended by the board of its bid target.
Bank shares fell back today after weak economic data from data from France and Germany. AIB fell 50 cents to euro 12.07 and Bank of Ireland is off 23 cents to euro 10.85
Technology and telecom shares came under pressure yet again after a surprise profit warning from Finnish mobile phone maker Nokia. The world’s largest mobile phone maker said it has halved its growth forecasts to 10 per cent blaming the sluggish global economy.
Iona fell euro 3.51 or 7.5 per cent to 43.50 whole Riverdeep is alos weaker down 20 cents at euro 5.45.