Irish food group and takeover target Golden Vale said on Wednesday that cost pressures would result in lower margins in the first half but that the outlook for the year as a whole was positive. "We are experiencing strong sales growth in many markets and we expect this to continue," the company, which received a takeover offer from larger rival Kerry Group on Tuesday, said in its annual statement to shareholders. It said its expectation of lower first-half margins was in line with a statement it made in February.Golden Vale reiterated that it considered the Kerry offer, which valued it at 218 million euros ($186.3 million), to be inadequate and failing "to recognise the underlying or potential value of the company". Golden Vale shares, which soared more than 37 per cent to close at 1.47 euros following the approach from Kerry.Kerry offered one new Kerry share for every 10 Golden Vale shares, with a cash alternative of 1.37 euros per share. Golden Vale Chairman Pat McKenna said the County Cork-based group, which operates in the Irish dairy and consumer foods markets, was well placed to grow significantly in the coming years, both organically and by acquisition."We have more than doubled our profits over recent years and we are confident that we have laid solid foundations for the future," he said. Source: Reuters
