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Campbeltowncowboy
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First Milk/Milk Link Proposed Merger
What do Milk Link members think of the proposed merger ? Who's got the most to gain and where does this leave DFoB ? 
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29/10/2007, 22:51
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Big Bird
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Re: First Milk/Milk Link Proposed Merger
Looks a decent move to me.
First Milk has more members and 50% more milk, Milklink has a higher turnover and profit.
As a Milklink member I would have some concerns as to why, with First Milks extra production, they are behind financially. I'd also be concerned that they've had to call force majeur on contracts this Autumn because it isn't wonderfully professional. I think from this side Milklink's management might look attractive.
On the Milklink side, I've been very worried that the new Wisemans factory at Bridgewater combined with the current milk shortage could seriously undermine the membership, and have been very tempted to hand in my notice because of this. As a Milklink member, a larger co-op would add some security provided the management was correct.
I'd certainly want to see Barry Nicholls, Chris Page and possibly Ronnie Bell involved in the new co-op if it goes ahead.
I don't know about where the merger leaves DFOB. They looked in a pretty big hole before it was announced.
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2/11/2007, 22:23
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Campbeltowncowboy
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Re: First Milk/Milk Link Proposed Merger
Big Bird
First Milk producers were told the reason for Milk Link profits being higher than First Milk is that your figures include your capital contribution in the profit that makes it look higher.
I would also say we have some very good management in place and think Peter Humphreys has brought in a good team at the First Milk Cheese Co.
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11/11/2007, 12:44
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Big Bird
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Re: First Milk/Milk Link Proposed Merger
quote:
Campbeltowncowboy wrote:
I would also say we have some very good management in place and think Peter Humphreys has brought in a good team at the First Milk Cheese Co.
If you think that's so, why start and continue another topic called 'have corporate parasites taken over First Milk'?
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11/11/2007, 13:51
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Campbeltowncowboy
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Re: First Milk/Milk Link Proposed Merger
That was my quote referring to the non executive directors who gave themselves an increase in renumeration from 22K up to 35K and backdated it to April when our milk price was 17p nothing to do with the executive team.
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11/11/2007, 20:09
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FiringOnAllFour
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Re: First Milk/Milk Link Proposed Merger
I don't really know anything about the english co-ops and what size we are talking about here.
But I take it that they have run all this past the monopolies and mergers lot?
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12/11/2007, 20:34
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Big Bird
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Re: First Milk/Milk Link Proposed Merger
Currently going through 'due diligence', if both parties then want to proceed it will have to go past monopolies & mergers.
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12/11/2007, 21:09
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Big Bird
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Re: First Milk/Milk Link Proposed Merger
quote:
Charryman wrote:
Can anyone else spot a potential problem looming in the proposed merger plans?
hmmm. I've said, as a Milklink member, that I think the merger is a good idea, and tried to give balanced reasons why it might appeal to both co-ops.
Get the impression that cambeltowncowboy feels a Firstmilk takeover of Milklink might be more appropriate.
If either party feels that there is a wide gap between them and they are taking on a weaker partner then the whole process is a waste of time.
I may well not be a Milklink member if and when it happens. I might be out of dairying, or I might need the money I have tied up in the co-op for other reasons despite the returns they're promising us.
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12/11/2007, 21:32
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Campbeltowncowboy
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Re: First Milk/Milk Link Proposed Merger
Big Bird
What gives you that impression?
I am all for the merger,I just have concerns about some directors thinking they are worth more than 22k and threatning to resign if they didnt get 35K.
I know very little about Milk Link or there members that is why I started this thread!!!!
No dought we will get well rehearsed mettings from both camps but I thought it would be good to find out what the producers thought themselves?
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13/11/2007, 0:10
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FiringOnAllFour
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Re: First Milk/Milk Link Proposed Merger
Exactly. Its not just about efficiency. Its about collective power, is it not?
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15/11/2007, 0:07
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Big Bird
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Re: First Milk/Milk Link Proposed Merger
Will the Milklink members be interested in a merger after the announcements of their half year accounts?
Be interesting to see First Milks figures.
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8/12/2007, 9:58
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Gavin56
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Re: First Milk/Milk Link Proposed Merger
The historical accounts are one thing , but Milk Link has a higher exposure to butter/powder than First Milk.
If the commodity markets continue to weaken First Milk is better placed than ML?
Mebbes aye mebbes naw.
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10/12/2007, 3:01
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Campbeltowncowboy
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First Milk/Milk Link Proposed Merger
The Wiseman family have just sold more shares,I heard that it was either First Milk or DFoB that has bought them,also heard that Wiseman are interested in part or all of DFoB business ,has anybody got any idea whats going on?
I was told the shares were at 70p premium which would suggest a pre-arranged deal!!
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20/12/2007, 21:40
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Big Bird
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Re: First Milk/Milk Link Proposed Merger
Somehow I doubt it was DFoB.
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20/12/2007, 21:57
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Campbeltowncowboy
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First Milk/Milk Link Proposed Merger
Big Bird: Could it have been Milk Link that bought the Wiseman shares?,if it had been First Milk that may have taken them over the 30% threshold and they would have been obliged to make an offer for all the shares.
No word from First Milk although a letter in today about changes to the wording of the supply contract in preperation if the merger goes ahead.
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29/12/2007, 21:09
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Campbeltowncowboy
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First Milk/Milk Link Proposed Merger
Have just heard that the merger talks are off. Has anybody any information if this is true?
It looked dodgey when Potters web page had details of some of the negotations.
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4/2/2008, 22:05
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FIBRO
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First Milk/Milk Link Proposed Merger
Yep, they're off! Couldn't agree on valuation of each co. mainly i think. First milk say they tried and tried and tried! Also say they have other projects in the pipeline!
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5/2/2008, 10:13
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Big Bird
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Re: First Milk/Milk Link Proposed Merger
Milklink's letter says that the merger proposed wouldn't be in the best interests of its members in terms of milk price or the security of our current investments.
Presume from this and other info I've had from another source that there was a problem with the due diligence as far as Milklink was concerned.
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5/2/2008, 15:01
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Campbeltowncowboy
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First Milk/Milk Link Proposed Merger
Charryman your spot on this is surely too important to let egos get in the way,are any of the directors qualified to value each others businesses I would have thought it would have been an independant valuer.
One thing which wasnt very professional was whoever let Potter know about the dissagreement over the value of the Wiseman shares. I hope they can resolve this but the letter First Milk members got it looks difficult.
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6/2/2008, 15:26
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Big Bird
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Re: First Milk/Milk Link Proposed Merger
quote:
Campbeltowncowboy wrote:
One thing which wasnt very professional was whoever let Potter know about the dissagreement over the value of the Wiseman shares.
Do you really think that was correct information? There are plenty of potential points for disagreement within the negotiations and, but something as transparently open as wisemans current share values surely couldn't be one of them. It would be to ridiculous for words to value those shares at purchase price rather than today's price unless possibly it were tit for tat over the value of something on Milklink's portfolio, and even then it wouldn't make sense to throw up something so easily valued.
I'd rate that story alongside father christmas being real and having fairies at the bottom of the garden. It's disinformation from somewhere.
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6/2/2008, 20:38
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Campbeltowncowboy
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First Milk/Milk Link Proposed Merger
Big Bird. Is it dead or can it be resolved,as a producer would you want to try to make them keep talking? I thought it made good sense but perhaps some directors on both teams realised there couldnt be jobs for them all. I dont know the truth and dont think we will be told because both sides will try to defend there own position,I just think it has been a great opportunity lost.
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6/2/2008, 22:40
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Big Bird
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Re: First Milk/Milk Link Proposed Merger
It might not be dead, but it's probably in a coma on life support.
As a producer I think both co-ops should go ahead with their own plans for now and give themselves the option of looking again in 3 to 5 years time. Can't see that banging their heads together again now is worthwhile.
I've been told by an independant source that the milk price implications of the deal going ahead would have ensured a 'no' vote from Milklink members anyway.
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6/2/2008, 23:05
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Big Bird
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Re: First Milk/Milk Link Proposed Merger
quote:
Campbeltowncowboy wrote:
Big Bird. Is it dead or can it be resolved,as a producer would you want to try to make them keep talking?
It's dead.
We had a local members meeting last night where Nairn Glen spoke. Miklink's reason's for the failure of the merger were given and were considerably more believable than the nonsense about the Wiseman shares, even accepting that it was Milklink's official version and may have been doctored to some degree. At an advanced stage there was an attempt to alter the relative valuations of the co-ops by changing to an asset's only valuation that took no account of the profitability of some businesses within Milklink. This was deemed not to be in Milklink members best interests.
There was no response from the members present to suggest the decision was wrong or to go back and try again, just to go forwards in other directions.
Certainly I'm happy with what we were told on the subject.
Last edited by Big Bird, 6/3/2008, 9:49
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6/3/2008, 9:40
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Campbeltowncowboy
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First Milk/Milk Link Proposed Merger
Big Bird I spoke to Will Sanderson at the NFUs agm,he wouldnt give too much away and some of the things I put to him he just smiled, but one of my colleagues spoke to a Milk Link director who was there and although First Milk wanted a merger where a 1.5million litre producer in both organisations had the same stake in the merged co-op Milk Link wanted some extra because your value added products will return a higher milk price for your members
Fair play if you can get a better price it will be the right decision for your members.
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7/3/2008, 10:08
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