Thursday, February 19, 2009

Keith Cooper hints at $200 million compensation from PGG

Craig Norgate can consider himself well and truly spanked and sent to the little boys' corner following the rejection of a pithy $10 million compensation offer for the failed partnership deal with Silver Fern Farms.
On the Farming Show yesterday, Silver Fern Farms CEO Keith Cooper hinted that up to $200 million might be more in the ballpark. Of course they won't get anything like that but some commentators believe PGG could be forced to pay well over $100 million.
Cooper said the value of the transaction had been clearly articulated at around $200 million and this was now lost.
"It can't be substituted with a new deal so we have got to come to a consensus as to what those damages are and quite simply they are vastly different to the $10 million dollar offer by PGG."
Norgate is finding out the hard way that Keith Cooper is not a man to be messed with. In a scathing attack on how PGG has conducted itself through the negotiations he said it was 'a little unusual for one of the parties to take negotiations into the media, particularly as they are a publicly listed company with other disclosure requirements.' could feel the blow landing on Norgate's chin as Cooper's stance caused an immediate decrease in the value of PGG shares and his broad hints at how much the settlement may cost the company will only continue this downward trend.
Norgate is learning fast that playing chicken with the big boys isn't so much fun after all.

To listen to the full fascinating interview with Keith Cooper go to:

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