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Fonterra directors expected the share and unit prices to fall

Jenny Ruth
Mon, 01 Nov 2021

Fonterra directors expected the share and unit prices to fall
Fonterra director Bruce Hassall said there was no alternative. (Image: PwC)
Jenny Ruth
Mon, 01 Nov 2021
Fonterra's directors were aware their decision to cap the Fonterra Shareholders' Fund (FSF) was likely to lead to both the fund's units and Fonterra shares falling.It's a matter of record now that more than $2 billion of farmers' wealth was destroyed by that announcement and that, although the FSF units also fell, the shares are trading at a 15% to 25% discount to the units.Given the pedigrees of some of Fonterra's directors, it seemed unlikely to me that they would have failed to anticipate the sharp reaction to the May...

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