The Meat Industry Action Group has the shareholder numbers to force Alliance Group and Silver Fern Farms to call special general meetings and discuss a merger.
MIAG wants an independently-chaired joint working party to look at consolidation.
Group spokesman John Gregan said the proposed PGG-Wrightson purchase of 50% of Silver Fern Farms would have no impact on his group’s ultimate plan of creating an entity to handle 80% of New Zealand’s red meat procurement and processing.
The meetings were unlikely to be called until after September’s vote by Silver Fern Farms’ shareholders on the proposal to merge with PGG-Wrightson.
Alliance Group chairman Owen Poole said he had meetings planned with shareholders next month to discuss his company’s strategic plan and would not consider holding a special meeting until after those talks.
SFF chief executive Keith Cooper said the board would meet next week and consider the action group’s proposition.
Mr Gregan did not have any problem with delaying the special meetings, saying having them after the PGG-Wrightson-Silver Fern Farms vote would make the situation clearer.
A “no” vote by shareholders would add to the pressure to get the two co-operatives talking. A “yes” vote meant the industry still needed consolidation, he said.
The detail of the resolutions was still being worked on with the meat companies. Mr Gregan said another remit would try to ensure the committee reached a decision.
“It is all very well telling them to get around the table, but we need some teeth . . . we need to give the chairman some ability to make them toe the line.”
This presupposes the working party will conclude a merger is the best option.
It also ignores the legal requirement for directors to do what is in the best interests of their companies so no matter what the working party concludes unless it is in the best interests of each company it will not be acted on.
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