It seems all is not well on the cane farm with Tully Sugar shareholders rallying support and calling an extraordinary general meeting next month to discuss the future direction of the unlisted north Queensland mill, which is the target of listed Maryborough Sugar Factory (MSF).
The Australian Financial Review reports that its sources say shareholders want more answers from Tully management about the hostile $90-odd million bid by rival MSF, which recently predicted a significant jump in earnings for the year.
It's known Tully is keen to pursue its own growth opportunities and is tipped to be sweet on Bundaberg Sugar's northern Queensland assets.
Tully chairman Dick Camilleri defended the board's position saying they can't go to shareholders with half the information, making reference to MFS bidders statement lodged earlier this month and an updated version this week after being asked by Tully to clarify a few points.
Tully has advised shareholders to take no action regarding the MSF offer but it's understood the board is going to knock back the 13-for-1 scrip offer.
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