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Categories: Mergers and Acquisitions

Unilever, Agrokor Bid for Russia's Talosto - Sources

Source: Reuters
19/09/2008

Moscow, Sept 19 - Global consumer goods group Unilever Plc/NV and Croatian food group Agrokor have placed separate bids for Russian frozen food maker Talosto, banking sources said on Thursday.

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"The offers concern an acquisition of Talosto's entire business. Both (offers) are now being considered," one of the sources familiar with negotiations told Reuters.

Unilever declined to comment, while Talosto and Agrokor were not immediately available for comment.

Talosto, which is majority owned by its general director Alexei Abrosimov, has five plants in the Moscow, St Petersburg and Rostov regions.

Nikolai Gabyshev, managing director of investment company Pollyanna Capital Partners, said Talosto's business could be worth around $145 million.

Talosto expects revenue of $162 million this year, of which ice cream sales will contribute 60 percent. It had a 12.4 percent share of the Russian ice cream market and 9.5 percent of the market for frozen semi-finished products in March-April of this year, according to market research group Business Analytica.

In February, Unilever bought leading Russian ice cream company Inmarko, which had a turnover of about 115 million euros ($166.8 million) in 2007. Investment bankers estimated the deal was worth $190 million.

Agrokor is also reportedly on a shortlist to buy a 89 percent stake in Russian retailer Lenta.



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