EBS set to change hands as Compart bids for Montedison - Brief Article

Eurofood, Feb 17, 2000

Italian industrial holding Compart is bidding for 100% of the shares in Montedison, which controls the France-based food company Eridania Beghin-Say. Compart already owns 65% of the shares in Montedison, an Italian company also active in the energy field. Compart said it would offer ??3.5bn for the remaining 35% stake.

NOT BIDDING FOR EBS DIRECTLY

The transaction may not have immediate impact on Eridania Beghin-Say, controlled by Montedison, which owns 50.9% of the shares. Compart said it does not plan to bid for any shares of Eridania Beghin-Say or the other major company owned by Montedison, the energy company Edison. Compart and Montedison have said that Eridania Beghin-Say is not for sale. Even if it were, Italian analysts say this may be the wrong time, since its value is likely to be low in view of declining sales last year. (1999 turnover at ??9.066bn, down 8.3% over 1998). EBS says revenues firmed in the second half of 1999 and growth is expected this year.