graphic
News > International
$2B cookie competition
December 14, 1999: 3:26 a.m. ET

Nabisco and buyout firm face challenge in race for ailing U.K. snack maker
graphic
graphic graphic
graphic
LONDON (CNNfn) - Britainís United Biscuits accepted a $1.88 billion takeover from Nabisco Holdings and buyout firm Hicks, Muse, Tate & Furst Tuesday, although a rival consortium immediately indicated it would top the 245 pence-a-share offer.
    Nabisco's bid appeared to end two months of speculation over the fate of Europeís second-largest cookie and cracker maker. However, a group led by the private equity arms of Paribas and Deutsche Bank said Tuesday it will remain in the fray.
    "We would be looking to create some daylight between our offer and the one on the table,Ē said a source at Finalrealm, the rival consortium. "It would not just be a penny or two (higher)." The offer may come later Tuesday, the source added.
    UB shares jumped 9 percent to 255 pence, well above Nabisco's offer, in anticipation of a new bid.
    Nabisco and Dallas-based Hicks, Muse are together offering 245 pence in cash for each United share, valuing the company at 1.161 billion pounds ($1.88 billion). The offer is well below the 260 to 270 pence a share expected by industry sources when bidding first began, after UB put itself up for auction in October. It represents a 30 percent premium to Unitedís share price on October 4, before takeover speculation started, though, and is 10 percent above its closing price in London Monday.
    Hicks, Muse and Nabisco (NA) had decided to pool their efforts after previous separate attempts to raise an offer by both firms had fallen down.
    Under their latest bid United Biscuits, best known for brands such as McVities and Penguin, would be renamed Burlington Biscuit Holdings, and would encompass the European and Middle East biscuit operations of Nabisco and Hicks, Muse.
    Nabisco will hold a 23 percent stake in the new company with the private equity specialist retaining the balance.
    Finalrealm's plan for UB includes selling a chunk of the company's assets outside western Europe to French bakery giant Danone (PBN).
    United recently sold its frozen food business to H.J. Heinz (HNZ) for $317 million. United (UBIS) shares rose 4.3 percent to 243 pence Tuesday. Back to top
    -- from staff and wire reports

  RELATED STORIES

Nabisco in $2B cookie bid - Dec. 13, 1999

United Biscuits confirms bid talks - Oct. 05, 1999

  RELATED SITES

Nabisco

United Biscuits


Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney




graphic

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: √ā¬© 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices √ā¬© S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: √ā¬© 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices √ā¬© S&P Dow Jones Indices LLC 2018 and/or its affiliates.