Greencore continues to ponder Northern plans

31st Jan 2011 11:39

Irish food producer Greencore says that it is considering its options now that BH Acquisitions has trumped its all share offer for Northern Foods. Greencore says that the logic of merging with Fox's biscuits maker Northern Foods to create Essenta Foods remains sound. It also "recognises the importance attached by the Northern Foods board to the certainty of cash value in their decision to change their recommendation". Non-core disposals reduced Greencore's debt last year. That could provide scope for a cash element to a bid if Greencore decides to continue to pursue Northern Foods. BH Acquisitions is offering 73p a share in cash for Northern Foods. This bid is recommended by Northern Foods. At its AGM today, Greencore said that it expects to deliver strong growth from its continuing activities in 2010-11. Convenience foods are expected to perform well this year. Greencore says that this growth depends on the Euro/pound exchange rate remaining in the range of 0.85 to 0.88. Northern Foods has adjourned its shareholder meetings originally called to vote on the Greencore merger.