Australia: Lion Nathan still in battle for Coopers

If the Lion Nathan, which is still fighting to make a hostile takeover of Coopers brewery will be blocked from doing this, there were still other companies that could be interested in acquiring Coopers shares a court heard on October 3, according to Asia Pulse.

Lion Nathan is seeking an injunction from the Federal Court of Australia to stop a Coopers shareholders meeting on October 20 from considering a resolution removing Lion Nathan's pre-emptive rights to buy Coopers shares.

The Coopers constitution states that the shares up for sale must first be offered to another Coopers shareholder, secondly to AMP or any other Coopers employee superannuation fund, and thirdly to Lion Nathan. Lion Nathan has launched a $A352 million ($US267.94 million) takeover bid for Coopers at $260 per Coopers share, which has been rejected by the Coopers board.

Legal counsel for Coopers, Dick Whitington, said the court that there were "other players" in the market, who were not brewers, who were potential bidders for Coopers shares but they were being deterred by Lion Nathan's "gatekeeper role".

Yet legal counsel for Lion Nathan, Neil Young, said it was unlikely that companies such as Rio Tinto would be interested in buying a brewer. Mr Young also told the court that if Coopers shareholders were to vote in favour of the resolution removing Lion Nathan's pre-emptive rights it would effectively amount to a rejection of Lion Nathan's takeover offer. Justice Alan Goldberg adjourned the hearing until 2pm on October 5.

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