Sos Cuetara hopes to create food giant - bid for 100% shares of Koipe - Brief Article - Statistical Data Included

Eurofood, Oct 11, 2001

Spanish food group Sos Cuetara has launched bid for 100% of the shares in compatriot edible oil producer Koipe, which is currently 51% owned by Italian conglomerate Montedison.

The offer is equivalent to 27 [European Dollar] a share on the condition that it obtains at least 15% of Koipe and values the company at 350m [European Dollar].

Trading in both firms has been temporarily suspended. The offer puts a 12.75% premium on Koipe, which closed at 23.95 [European Dollar].

Sos Cuetara, which was formed following the merger of rice producer Sos Arana with biscuit maker Cuetara, hopes to create a new food giant in Spain, to rival the supremacy of Ebro Puleva.

It has already received a certain amount of opposition for its share offer, namely from several Spanish banks, which between them own 18.1% of Koipe stock. Fellow food group Accor owns 10% of Koipe

Sos Cuetara reported profits of 5m [European Dollar] in 2000, on sales of 216m [European Dollar]. Koipe posted profits of 12.9m [European Dollar] last year and generated sales of 480.5m [European Dollar].

It controls an estimated 30% of the Spanish olive oil market, with its Carbonell and Elosua brands.