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Article: Money-go-round and bad timing sink meat bid
- Article from:
- Sunday Star-Times
- Article date:
- October 12, 2008
- Author:
CopyrightCopyright 2008 Sunday Star-Times. Provided by ProQuest LLC. (Hide copyright information)
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PGG Wrightson blamed the banks, but that's not the whole story,
writes Tim Hunter. -------------------- IN THE wake of PGG
Wrightson's failure to complete a $145 million transaction in its
deal with meat giant Silver Fern Farms, the market is buzzing with
speculation about the cause.
On October 1, PGG Wrightson was due to pay Silver Fern $145m in
the first stage of the deal - in which PGG Wrightson was to take a
half share of the Dunedin-based co-operative - but said it could not
because several banks which had committed to fund the deal had been
unable to finalise their credit approvals.
A statement from the company said the problem was "entirely a
function of the extreme financial ...