Coca-Cola Amatil cool on Lion Nathan bid

Alcoholic drinks maker Lion Nathan says its proposed $8 billion takeover of Coca-Cola Amatil would yield as much as $130 million in annual savings. The soft-drinks maker, though, has given the scheme of arrangement a cool response.

To finance the $4.5 billion cash component of the bid, Lion Nathan will place 327 million new shares with its major shareholder, Japanese food and beverages giant Kirin Holdings at a price of $11.50 per share. It will also take on $800 million in debt.

The company sought to allay concerns over the influence wielded by Kirin, whose stake would increase to 47.5%, from 46.1%, after the issue of the new shares.

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