Fraser & Neave Ltd. (FNN) plans to say that Overseas Union Enterprise Ltd (OUE)’s $13.1 billion ($10.7 billion) takeover offer is “not compelling, but fair,” according to three people with knowledge of the matter.
F&N’s board may announce its view on the bid today, based on recommendations from adviser JPMorgan Chase & Co., said the people, who asked not to be named because the deliberations are private. The language is the same as what F&N directors used to describe an earlier offer from companies controlled by Thai billionaire Charoen Sirivadhanabhakdi.
An OUE-led group offered to pay S$9.08 a share for the company on Nov. 15. Charoen, through Thai Beverage Pcl (THBEV) and TCC Assets Ltd., in September bid S$8.88 a share for the 70 percent of Singapore-based F&N he didn’t already own. F&N has said it agreed to pay the OUE consortium a break-up fee of as much as S$50 million if a competing offer is successful.
Spokesmen at F&N, OUE and JPMorgan declined to comment or weren’t immediately available to comment on the view.
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