Hostile takeover bid for UGG launched

Our History: July 1997

Hostile takeover bid for UGG launched

In March of 1997, Manitoba Pool and Alberta Wheat Pool joined to launch a hostile takeover bid of United Grain Growers. UGG fought off the offer with a “poison pill” defence to lower its share values, and the Pools later dropped the takeover attempt. However, UGG continued with a defence strategy against future takeovers and developed a plan to form an alliance with U.S. processing giant Archer Daniels Midland. This ad in our July 10, 1997 issue encouraged shareholders to support the deal, which was later approved.

A joint article by Manitoba Agriculture, Manitoba Crop Insurance and the Canada-Manitoba Farm Business Management Council in that issue had maps illustrating the use of Groups 1, 2 and 3 herbicides by township in Manitoba. The article warned against the development of resistance, which had already reached high levels for some weeds.

A story that week welcomed recent rains overall, but they were excessive in some areas, with seven inches reported at Vita July 1 and 2.

North Dakota Senator Byron Dorgan was again protesting Canadian wheat imports. In a news conference, he was accompanied by a North Dakota State University economist who said that the imports had cost North Dakota producers $222 million over the previous three years.

There was good news for cattle producers that week — prices had recovered over the previous 12 months after hitting an 11-year low in April 1996.

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