Silver Fern Farms says it has reviewed in detail ''a number of times'' the costs and benefits of industry consolidation, including those related to a potential merger with Alliance Group.
Yesterday, chief executive Dean Hamilton said clarity was needed after shareholders Allan Richardson and John Cochrane advised the 5% minimum threshold of shareholder votes required to hold a special meeting had been exceeded.
The resolution, which they wanted considered at the meeting, was the board be required to provide all shareholders with a full analysis of the potential benefits and risks of a merger with Alliance Group, along with a comprehensive risk mitigation plan, verified by an independent firm.
Earlier this week, Mr Richardson said the board should have investigated the potential savings of $100 million a year, from a merger of the two co-operatives, which was tabled in a Meat Industry Excellence-commissioned report.
Mr Hamilton said the company rejected that statement and considered it misleading.
A merger required the willing participation of all affected parties and, over time, Silver Fern Farms had had discussions with various parties which had been inconclusive.
''While the costs and benefits of potential rationalisation opportunities can and have been estimated, if the opportunities remain unconsummated then the analysis is moot,'' he said in a statement.
While the company was not involved with the MIE report, the board reviewed it when it became public and found there was little in the way of new information not previously available to the board, he said.
If called, the special meeting would discuss and vote on the resolution.
It would not have any more information available to it to consider any analysis or risk plan.
The resolution was non-binding. Only if it was passed at the meeting and if the board elected to act on it would the board then undertake and provide the further analysis sought, subject to the normal bounds of commercial confidentiality, Mr Hamilton said.
The topic had been discussed with shareholders in many forums including at supplier meetings and at its annual meeting.
The company looked forward to the opportunity to discuss those matters of interest further with shareholders, he said.
Yesterday, Mr Richardson said he hoped the board would respect the views of the shareholders and carry out the full cost benefit analysis and risk mitigation plan.
• Disgruntled Alliance Group shareholders say they hope to have the support from 5% of their number within the next 10 days that is required to force a similar special meeting, BusinessDesk reported.
