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FIBRO
VG85
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Registered: 05-2006
Posts: 57
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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, 9:13
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Big Bird
Cowtalk Staff
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Registered: 06-2003
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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, 14:01
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Campbeltowncowboy
EX90
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Registered: 03-2007
Posts: 164
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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, 14:26
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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, 19:38
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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, 21:40
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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, 22:05
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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, 8:49
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6/3/2008, 8:40
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Campbeltowncowboy
EX90
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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, 9:08
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