Kerry Group has come close to winning control of Golden Vale as the first deadline for its #245 million (£193 million) bid passed yesterday, market sources believe.

It is thought Kerry has received close to the 80 per cent acceptances needed to declare the offer unconditional.

A spokesman for Kerry would not comment on the level of acceptances and this will only be made public this morning.

Market sources said it would be a surprise if Kerry actually reached the 80 per cent target by the first closing date given the number of individual Golden Vale shareholders.

If it falls short, then Kerry can extend the offer for an unspecified period, although a two to three-week extension is the norm in these circumstances. It is thought likely that institutional shareholders, who own about one-third of Golden Vale, have accepted the Kerry offer as have most of the non-farmer private shareholders who own another one-third of the group.

The key to Kerry's bid has been to get the acceptances of the milk suppliers who own 12 per cent of the shares and other farmers who own about 20 per cent.

To this end, Kerry managing director Mr Denis Brosnan has addressed five meetings of members of Golden Vale Co-op, attended by more than 2,000 Golden Vale shareholders.

These meetings focused on issues of specific interest to Golden Vale milk suppliers and co-op members, including the electoral system for Kerry Co-op if the takeover goes ahead, Kerry Co-op membership for members of Golden Vale Co-op, Kerry Coop patronage shares and milk collection arrangements.

The patronage share offer from Kerry Co-op is one co-op share for every 1,000 gallons of milk supplied to Kerry over the next five years, but this only comes into play if the Kerry Group bid for Golden Vale plc is successful.

While individual Golden Vale milk suppliers expressed reservations about Kerry's offer when it was first unveiled, Kerry's plans for a successful takeover have been boosted by support from the Irish Co-operative Society, the Irish Farmers Association and the Irish Creamery Milk Suppliers Association.

Kerry is offering one of its own shares for every 10 Golden Vale shares, 13 cents per share in cash, plus interim and special dividends worth another 4.26 cents per share.

There is also a straight cash alternative of #1.50 per Golden Vale share plus the 4.26 cents in special and interim dividends.

Kerry tabled its offer when its own shares were trading at #13.70 - producing the initial valuation for the offer of #1.5426 per share.

But Kerry shares have risen sharply during the past few weeks, making the offer more attractive to Golden Vale shareholders.

At yesterday's Kerry price of #14.20, the offer is worth #1.5926 per share to Golden Vale shareholders, if they opt for the share alternative.