C-C Amatil bids for Neverfail


  • Business
  • Wednesday, 30 Apr 2003

SYDNEY: Australia-based soft-drinks bottler Coca-Cola Amatil Ltd (C-C Amatil) launched a A$214mil takeover bid for Neverfail Springwater Ltd yesterday, pushing harder into the fast-growing bottled water market. 

Coca-Cola Co, which owns 35% of C-C Amatil, has launched or bought bottled water brands in many developed markets in recent years as it struggles with maturing soft-drinks demand. 

But Neverfail’s share price jumped above C-C Amatil’s bid price as analysts said a rival offer was possible, with speculation focusing on European food giants Nestle and Groupe Danone. 

C-C Amatil said it had bought 14.99% of Neverfail on Monday, and offered A$2.25 a share in cash for the rest of the company, valuing it at about A$214mil. 

The bid represents a 22% premium to Neverfail’s A$1.85 closing share price on Monday, but investors pushed the cooler supplier and water distributor's stock up 28% to a nine-month closing peak of A$2.36 yesterday. – Reuters  

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