Beghin-Say talks go on, and on
buy its majority stake in sugar maker Beghin-Say said on Wednesday
that the price was likely to be reviewed on the imminent deal.
Italian energy company Edison and the French consortium bidding to buy its majority stake in sugar maker Beghin-Say said on Wednesday that the price was likely to be reviewed on the imminent deal.
"We can confirm that we are discussing the price with Edison," a spokeswoman for the consortium said.
"The negotiations are continuing, they are still discussing the price," an Edison source added.
So far, both the consortium, made up of sugar cooperatives Union SDA and Union BS, and Edison have repeatedly said talks continued to be based on the initial offer of €40 per share, put forward in June.
But since then, Beghin-Say shares have slipped almost 10 per cent, which made many analysts and traders believe the price would be revised downwards.
Neither the Edison source nor the consortium spokeswoman would confirm news reports on Wednesday that the basis for discussion was now closer to 37 euros per share.
The consortium spokeswoman said that talks with Edison, which started over four months ago, were now almost concluded.
"We are about to reach a deal. We just need to finalise the financing with the banks," she said. "It's imminent".
The consortium signed on Thursday a deal with cooperatives Cristal Union and Sucreries-Distilleries des Hauts de France (SDHF) to cede back four plants, as well as with Saint-Louis Sucre which will buy some of the Beghin-Say sugar quotas.
Beghin-Say is one of four food groups left over after the break-up of food processor Eridania Beghin-Say, which was put up for sale after its previous owner Montedison was bought by Fiat-led Italenergia.
At a share price of €40, the Beghin-Say market capitalisation is close to one billion euros. At €37 per share it is around 950 million euros.The Beghin-Say share was down almost three per cent in morning trade on Wednesday at €36.80 per share.