Heinz Launches $288 Million Takeover Bid For Gold Circle

Brisbane, Australia (AHN) - American food giant HJ Heinz Co., maker of Heinz Ketchup, has launched a takeover bid for Gold Circle Ltd. of Queensland, Australia for $288 million.

Heinz has offered $1.65 for every Gold Circle share, three times more its current market price on the National Stock Exchange of Australia.

The Golden Circle board and Anchorage Capital Partners, its largest shareholder at 35 percent, support Heinz's offer, citing Heinz's credibility as a leading global player and innovator in the food industry.

The takeover proposal comes at a time "of difficult economic conditions," and that the timing and guaranteed phased payment make the offer attractive, said Philip Cave, Golden Circle chairman.

Golden Circle has over 500 products, including canned fruit and vegetables, fruit juices, drinks, cordials and jams.

Heinz, on the other hand, is aware of Golden Circle's importance to the Australian farming community and assured that the company will maintain existing contracts with growers.

The transaction is subject to regulatory and shareholder approvals and is expected to be completed by late December.