SUN-RYPE TURNS DOWN CLEARLY CANADIAN
By Adnews Staff
The board of Sun-Rype Products has rejected a $40 million takeover bid by Clearly Canadian of Vancouver because the offer isn't high enough. Other reasons cited in the decision include a lack of synergy between the companies and concerns about Clearly Canadian's working capital. "The offer is also unfair," board chairman Merv Geen says in a release. "It is only for majority control of the company and that would leave some shareholders in a minority position, holding a stock that would have little or no value." The offer expires Aug. 7. Sun-Rype of Kelowna, B.C. is controlled and 60% owned by the B.C. Fruit Growers Association. The group formed the company as a co-operative 50 years ago. Its biggest business is fruit juices, but it also makes dried fruits and granola bars. Clearly Canadian is also a juice marketer. Advertising for both companies is done by Palmer Jarvis Advertising of Toronto.