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French lead cookie war
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December 17, 1999: 5:58 a.m. ET
United Biscuits accepts $2B offer from Danone-backed group; U.S. bid still in play
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LONDON (CNNfn) - Britain’s United Biscuits accepted a $1.26 billion pound ($2.04 billion) bid from a French-led consortium Friday, though the two-month scrap for Europe’s second-largest cookie company may not be over.
Finalrealm, formed by three private equity firms with backing from French food giant Danone, said its 265 pence a share offer had been recommended by United, which put itself up for sale in October after a lengthy period of underperformance.
The offer topped the bid accepted Tuesday from Burlington, a company formed by Nabisco Holdings (NA) and Texas-based buyout specialist Hicks, Muse, Tate & Furst. Burlington had raised its own offer from 245 pence to 254 pence Wednesday, but said Friday that it was still considering its position.
The Finalrealm offer pushed United Biscuits (UBIS) shares up 2.7 percent to 262 pence in early trading Friday.
Danone (PBN), best known for its dairy products, Evian mineral water and Kronenbourg beer, has teamed up with PAI, the private equity arms of BNP-Paribas, Britain’s Cinven and DB Capital Partners, an arm of Deutsche Bank to bid for United.
Finalrealm plans to break up United, selling its continental European activities to Danone, and allowing the venture capitalists to spin off the U.K. business.
Danone shares rose 0.6 percent to 222 euros Friday.
Burlington urged United shareholders Friday not to take any action on the Finalrealm offer, claiming it’s own bid had already received acceptances from 30 percent of the company’s stockholders.
Nabisco shares closed down 1-1/8 at 32-1/4 Thursday. 
-- from staff and wire reports
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