April 17, 2007

Regulator considers Louis Dreyfus application against Olam
 

Australia's Takeovers Panel said Tuesday it would consider an application from Louis Dreyfus Cotton International NV regarding a takeover bid for Queensland Cotton Holdings Ltd.

Louis Dreyfus, an international commodities trading company, owns 19.9 percent of QCH, which is currently the subject of a friendly takeover bid by Singapore-based Olam International Ltd.

QCH revealed last week that Louis Dreyfus had approached it with its own takeover bid. Louis Dreyfus said its indicative bid was superior to the A$4.75 (US$3.95) a share offer from Olam unveiled Mar 7, adding its Apr 2 and Apr 10 requests for due diligence materials were rebuffed by QCH's board due to the terms of its agreement with Olam.

Louis Dreyfus wants equal due diligence access and asserts QCH's target statement and its subsequent market announcement contain "false or misleading disclosures, specifically in relation to the possible competing proposal by Louis Dreyfus", the regulator said in a statement.

"Louis Dreyfus seeks a declaration of unacceptable circumstances" and wants all acceptances of the Olam offer suspended until the Panel has made a final decision, it said.

"The Panel has not decided whether to conduct proceedings in relation to the application and makes no comment on the merits of the application," it added.