Friday, October 19, 2012

F&N shares jump after OUE says considering counteroffer

Shares of Fraser and Neave, a takeover target of a Thai billionaire, jumped more than 2% on Friday after hotel and property firm Overseas Union Enterprise said it is considering making a counteroffer for the company.

F&N shares rose as high as $9.14 after a trading halt was lifted, above the Thai offer of $8.88 per share.

OUE is in early talks with Japan’s Kirin Holdings to be partners for a takeover bid for F&N, two sources with direct knowledge of the matter said. 

The surprise move by OUE on the drinks and property group may force the Thais to raise their offer, which F&N’s board has described as “not compelling but fair.”

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