SINGAPORE--Fraser & Neave Ltd.'s (F99.SG) financial adviser
has said that Overseas Union Enterprise Ltd.'s (LJ3.SG) US$10.6
billion offer to take control of the Singapore conglomerate isn't
"compelling, though fair," suggesting that the bid may not get
support from Fraser & Neave's board, two people with knowledge
of the situation said Wednesday.
Fraser & Neave is currently the subject of a
multibillion-dollar takeover battle between Thai billionaire
Charoen Sirivadhanabhakdi and Overseas Union, majority-owned by the
wealthy Indonesian Riady family. Mr. Charoen had in September made
a US$7.2 billion offer for Fraser & Neave through his unlisted
entity TCC Assets and Thai Beverage PCL (Y92.SG).
JPMorgan Chase & Co. was appointed by Fraser & Neave to
give it an independent appraisal of the two bids.
Overseas Union had last month made a 9.08 Singapore dollar
($7.44) a share bid for Fraser & Neave.
An OUE spokeswoman said "we believe that JPM will find our offer
attractive with Kirin Holdings Co. Ltd. (2503.TO) on board and the
synergies could be achieved in combining F&N's property
business with ours."
In October, Fraser & Neave, citing the advice of JPMorgan,
said Mr. Charoen's S$8.88 per share offer was "not compelling,
though fair." JPMorgan noted that it was near the low end of its
estimated valuation for Fraser & Neave of S$8.30 to S$11.22 a
share.
Shares of Fraser & Neave are now trading at 9.63 Singapore
dollars each, up 55% so far this year, and over 7% higher than
their levels in September.
Write to P.R. Venkat at venkat.pr@dowjones.com
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