Rumors from country QLD that BUG will be used as a 'backdoor listing' by Kingaroy based PCA (Peanut Company of Australia).
In an attempt to spread its commoditiy base, as well as to overcome increasing pressure from other local peanut processor Crumptons, PCA see BUG as an opportunity of listing on the sharemarket as an cheaper method of dissolving the growers co-op whilst creating some diversification.
PCA strengths are placing pressure on growers in order to squeeze margins on their basic product. This expertise would be useful for the BUG operations.
BUG will also fit in nicely with its expertise in product enhancement which PCA has yet to explore.
Recent bad profit news could signal a move by PCA.
Although 'Big sisters foods' have almost a 20% stake in the company, it is believed that Big Sisters would welcome the chance of escaping the stock that has been on a downward spiral this last decade.