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Factors behind the Fonterra shareholders’ rejection of the board’s capital restructuring plan of 2007

Nilsson, Jerker and Rydberg, Charlotta (2015). Factors behind the Fonterra shareholders’ rejection of the board’s capital restructuring plan of 2007. Journal of cooperatives. 30, 1-27
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Abstract

The New Zealand dairy cooperative Fonterra is one of the largest in the world. In 2007, its Board presented a capital restructuring proposal with the aim of reducing the equity redemption risk, solving members' portfolio problems, and acquiring capital for the cooperative. The proposal indicated that external owners would be allowed, but that members would own most of the stock. The shareholders rejected the proposal. This analysis of why the proposal failed shows that two specific characteristics of Fonterra were primarily responsible: The shareholders considered the Fair Value Share to be instrumental in securing full member control and the Shareholders' Council effectively channeled members' opinions.

Authors/Creators:Nilsson, Jerker and Rydberg, Charlotta
Title:Factors behind the Fonterra shareholders’ rejection of the board’s capital restructuring plan of 2007
Series/Journal:Journal of cooperatives (BIB2150227)
Year of publishing :2015
Volume:30
Page range:1-27
Number of Pages:27
Publisher:Arthur Capper Cooperative Center, Kansas State University
ISSN:9922620197
Language:English
Publication Type:Journal article
Refereed:Yes
Article category:Scientific peer reviewed
Version:Published version
Full Text Status:Public
Subjects:(A) Swedish standard research categories 2011 > 5 Social Sciences > 502 Economics and Business > Business Administration
Keywords:Fonterra, New Zealand, cooperative, dairy, Shareholders’ Council, Fair Value Share
URN:NBN:urn:nbn:se:slu:epsilon-e-3266
Permanent URL:
http://urn.kb.se/resolve?urn=urn:nbn:se:slu:epsilon-e-3266
ID Code:13003
Faculty:NJ - Fakulteten för naturresurser och jordbruksvetenskap
Department:(NL, NJ) > Dept. of Economics
Deposited By: SLUpub Connector
Deposited On:29 Feb 2016 12:33
Metadata Last Modified:11 Jun 2016 07:57

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