F&N Said to Plan Calling OUE’s Offer ‘Not Compelling, But Fair’

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.

F&N traded at S$9.62 a share at 11:51 a.m. in Singapore today. The company has a market value of S$13.85 billion at that price.

Spokesmen at F&N, OUE and JPMorgan declined to comment or weren’t immediately available to comment on the view.

To contact the reporters on this story: Joyce Koh in Singapore at jkoh38@bloomberg.net; Elffie Chew in Kuala Lumpur at echew16@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net