ANALYSTS today raised questions about the complexity of Irn Bru-maker AG Barr’s proposed merger with Pepsi bottler Britvic after the Takeover Panel gave the pair a “surprise” second three-week extension to the deadline for their talks.
Canaccord Genuity analyst Wayne Brown said: “This second extension will stoke fears the merger is more complicated than most had anticipated.
“This should come as no real surprise considering the underlying financial challenges that Britvic faces set against the conservative and pragmatic nature of the AG Barr board.”
Shore Capital analyst Phil Carroll added: “The further extension is slightly surprising as we had expected [the deal] to be agreed. It would appear the discussions and subsequent due diligence are being carried out in a thorough manner, which we suspect is being led by AG Barr.”