Minority shareholders have rejected a takeover offer for New Zealand Farming Systems Uruguay.
The minority shareholders say the 70-cent-a-share offer from majority shareholder Olam is too low and believe the net asset value is closer to 85 cents per share.
Led by investors Rob Poole, Kevin Goble and PGG Wrightson former chief executive Barry Brook, who oversaw Farming Systems' expansion, the group says it has the support of shareholders who hold more than 10% of shares.
Barry Brook says the group hopes Olam will raise its offer.
One investment adviser had previously described Olam's takeover offer as cheeky, saying once the company's debt is repaid, its outlook will be considerably better than it's been in a long time.
The offer has support from Farming Systems' independent directors Graeme Wong and John Roadley, who recommended shareholders accept the deal, saying it's fair, and they will sell their holdings.
