AUSTRALIA: Cranswick profit warning puts Evans&Tate merger in doubt
Announcing its own results, Evans & Tate said a planned deal may need to be revised.
Evans & Tate chief executive Franklin Tate said: "The announcement today is clearly an issue they have to contend with and we have to take into account in our value equation."
Tate warned that he would not go ahead with the deal if it was anything but EPS positive for June 2003.
Cranswick has announced that it expects a A$23m (US$12.6m) loss for the year ended June 30, compared to its estimate when the proposed merger was announced in June of a loss of A$12 to A$15m. It will report its results on September 9.
Evans & Tate, meanwhile, today reported a net profit of A$2.9m for the year ended June 30, up from A$2.3 million a year ago and within market expectations.
Tate, said that a decision would probably be made on whether or not to go ahead with the deal within three weeks, but the company would pursue other acquisitions if Cranswick now fell through.
Companies: Evans & Tate Wine Group
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