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A surprised and disappointed Lion Nathan says it will now walk away from discussions with Coca-Cola Amatil's (CCA) US parent after it terminated talks over a $7 billion takeover proposal.
Soft drinks maker CCA said its parent company, The Coca-Cola Company (TCCC), had terminated takeover talks with Japan's Kirin Holdings Company Ltd, majority shareholders in brewer Lion Nathan.
"Given that the proposal required the support of TCCC as a condition of the proposal being able to proceed, the CCA board takes the existence of this letter as bringing the proposal to an end," CCA said in a statement.
The proposal, offered last November 7, was first rejected by CCA which said it had a number of "material deficiencies" and a "range of material conditions".
In particular, the proposal required the sale of TCCC's 30% stake in CCA to Lion Nathan.
Lion Nathan chief executive Rob Murray on Sunday said it was disappointing the CCA board was unable to engage in an attempt to give its shareholders the chance to review the offer which included a 30% premium.
"We are surprised TCCC have terminated discussions now after three months when it appears to us that all Australasian aspects of this deal were virtually agreed," he said.
"We have always said that this deal cannot be hostile.
"We are not prepared to invest further effort unless all parties are willing to try to facilitate an outcome in the best interests of the Australian business.
"In the circumstances, we will now walk away and focus on delivering 10-16% net profit after tax growth for our shareholders."
Kirin competes with TCCC and CCA in the Australian market through its majority-owned juice company Berri, and milk and dairy products groups National Foods and Dairy Farmers.
CCA will release its interim results on February 12.
Shares in CCA fell 14 cents, or 1.48% to $9.35 on Friday, while Lion Nathan's stock firmed 10 cents, or 1.24% to $8.18.
