Heinz bids for Australia's Golden Circle

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Sydney, October 6: : US food giant HJ Heinz Company has launched a 288 million dollar (USD 215 million) takeover bid for food and beverage firm Golden Circle, the Australian company said on Monday.

Heinz's Australian arm has made an offer for all shares on issue at 1.65 dollars in cash, Golden Circle said.

The bid, which is backed by Golden Circle directors, values the stock at more than four times the company's previous closing price of 40 cents and follows a failed 212 million dollar bid last year from Coca-Cola Amatil Ltd.

Golden Circle, a former farmer's cooperative which has been listed on the Australian stock exchange since March, has some 700 shareholder growers and the company said Heinz had indicated it wanted to maintain grower contracts.

"The board also considers the certainty of timing and payment of the Heinz proposal as attractive for all Golden Circle shareholders, particularly during a period of difficult economic conditions," chairman Phillip Cave said in a statement.

Golden Circle shareholders are expected to meet in December to vote on the bid. The transaction must also be approved by the Foreign Investment Review Board.