Welington, Nov. 22 - Fonterra Cooperative Group Ltd.'s plans to restructure the cooperative's capital structure and seek a NZ$2 billion-plus stock market float could face big hurdles due to opposition from some major dairy industry players, the New Zealand Herald reported Friday.
Fonterra's fourth-largest private milk supplier, Otago farmer Grant Paterson, is among those set to oppose the company's capital shakeup, the newspaper said.
It quoted Paterson, who owns 18 dairy farms milking more than 10,000 cows in Otago and Southland, as saying Fonterra's proposal would see farmer-shareholders giving away too much of the company and that the restructuring was covering up for weak management and governance.