Food giant Nestlé SA yesterday moved to quell market speculation that it was poised to initiate a top-dollar bid for US chocolate-maker Hershey Foods, suggesting it would only pursue deals that met certain growth and cost criteria.
Following an analyst presentation in New York yesterday, Nestlé executives reiterated their aim of generating real internal growth of at least 4 per cent and a cost of capital of no more than 8 per cent from any acquisition, according to analysts and investors who spoke with the executives.
Some industry analysts said that would equate to a bid of about $80 (€81) per share, or $10.9 billion, for Hershey, less than some had hoped.
The comments helped dampen investor enthusiasm that Nestlé might bid as much as $12 billion, while fuelling speculation that Hershey's high price demands had thrown the auction into doubt.
Nestlé shares remained volatile yesterday, closing down 0.31 per cent, underperforming Swiss stocks and European food sector rivals. In New York, Hershey shares fell as much as 2.4 per cent before trading down 54 cents, or 0.5 per cent, at $76.26 in late afternoon trading in New York. - (Reuters)
Murray appointee to boost biotech portfolio
JUST weeks after the reported collapse of the sale of Murray Consultants, one of the largest and best-known public relations firms in the State, the company has appointed a senior IDA figure, Mr John Lloyd, to target new clients in the biotech and pharmaceutical industries.
Mr Lloyd has been with the IDA for two decades. He is currently a member of the executive committee and management committee at the IDA and is manager of the pharmaceutical, food and healthcare divisions of the agency.
He will take up his new position at Murray in October when he retires from the IDA.
Mr Joe Murray, who owns Murray Consultants with Mr Jim Milton, said Mr Lloyd would be responsible for developing the company's client base primarily in healthcare, biotech and pharmaceuticals. He said those sectors were of major importance to the Irish economy and were "more stable than many high-tech companies".
"Many of the world's best-known pharma and healthcare companies have substantial operations in Ireland and John has played a key role in securing their presence here throughout his distinguished career with the IDA," Mr Murray said.
Mr Lloyd will not only be responsible for targeting firms already in the State but will also target companies who may be planning to relocate to the Republic.)
