F&N/Thai Bev

F&N/Thai Bev: THE Thai consortium seeking control over F&N has declared that it will block a proposed capital reduction for F&N. With no other concrete plan on the table for F&N to return proceeds from a proposed disposal of APB, the move could push some F&N minorities toward accepting the Thais' general offer. The proposal by F&N, in which the Thais hold a 30.7% stake, is to pay shareholders $8.50 per cancelled share for culling one out of every three shares held. The capital reduction needed 75% approval to pass. F&N's board said earlier this wk that if the proposed capital reduction is rejected, it will wait until after the Thai offer expires or is completed to consider alternatives. Prior to this, many analysts had speculated that they would block the resolution, if only to gain better control of F&N's cash in light of the takeover bid. They can review the capital needs of F&N, and having the cash on hand allows them to go on an expansionary track through M&As and capex ramp if they see good growth opportunities in the region, DMG says.