Icelanders cool speculation on Greencore bid

By Liam O'Neill

Speculation that Greencore is about to be taken over by an Icelandic investors was played down this week after sources close to the Exista investment group denied any that they were bidding for the Irish company.

Exista have built up a minority shareholding in Greencore and newspaper reports earlier this week suggested that they had retained Deutsche Bank to advise on a possible bid for Greencore.

An Exista spokesman subsequently denied the takeover rumours.

Meanwhile, Greencore chairman, Ned Sullivan, told the company's AGM last week that a change of ownership was not required.

"We do not need a change of ownership to implement our strategy for shareholders. We have a clear strategy and it is working and we have the manpower to implement the strategy'', he told shareholders. Commenting on CFD's (contracts for differences) O'Sullivan said "it is not in the best interest of the functioning of the market.''

Other key points made by O'Sullivan at the AGM were:

The revised EU restructuring aid allocation will result in a final instalment of €83.4 million to be paid at the end of February.

The company will record an exceptional profit of at least €15 million in its 6 month accounts to 31 March 2008 to reflect the increased value of the EU restructuring aid payable (€127.0 million versus €112.1 million disclosed in the 2007 financial statements).

Approximately 80% of total operating profit is expected to be delivered in sterling and the change in the euro/sterling exchange rate seen in recent months will impact on its results. If the euro/sterling level were to continue in the 0.74 to 0.75 range for the rest of the current financial year, the translation effect year-on-year would reduce the company's operating profit by about €8 million.

Sullivan paid tribute to David Dilger as this was his final AGM as Chief Executive having been appointed in 1995.