Cirio raises offer for Del Monte - Cirio Alimentare - Del Monte Royal Foods - Brief Article

Eurofood, Feb 13, 2001

Italian Cirio Alimentare has increased its offering price for control of Del Monte Royal Foods from South African Rand5.25 to SaR6 per share, leaving shareholders until March 5 to decide.

The Italian offer is conditional on majority control by Cirio of Del Monte Royal Foods and agreement by two other Del Monte groups--Del Monte Royal Holding and Del Monte Royal Corporation--to agree to be abolished, leading the way for the merger of Cirio Alimentare and Del Monte Royal Foods as a major multinational in fresh and frozen fruits and vegetables. The new offer was made, according to the Italian media, after an agreement between Cirio boss Sergio Cragnotti and South African financier Vivien Imerman, a major share-holder in Del Monte groups. In its last offer two months ago, Cirio had offered SaR5.25 per share after declining to purchase 24% of the shares of Imerman at SaR8 a share. The cost of all shares at SaR5.25 a share would have been Lit330bn. Cirio already holds 36% of the shares of the Del Monte operations. If successful, the it will end a long-drawn saga that began with Cirio and Imerman as allies but eventually fall out with one another over management differences.