ABN Amro recommending a switch into Northern Foods from Geest.
ABN argued that the bid speculation had opened up "a sizeable and seemingly
unjustified valuation gap" between Geest and Northern Foods. Northern Foods is on a 2003/4 price-earnings ratio of 8.3 against Geest's 2003 ratio of 10.6, ABN noted. It also highlighted that the former offers a 7 pct yield compared to Geest's 4.5 pct.
"To our mind the magnitude of this valuation gap is unjustified and we see a
trading opportunity here to switch out of Geest into Northern Foods," it
concluded.

Ex divi tomorrow.

Proposed Merger Between Greencore and Northern Foods


For immediate release

PROPOSED MERGER BETWEEN
GREENCORE AND NORTHERN FOODS TO CREATE ESSENTA FOODS

Highlights

* Recommended merger between Greencore and Northern Foods. Combined Group to
be called Essenta Foods

* Greencore and Northern Foods shareholders will, on a fully diluted basis,
each hold approximately 50% of the enlarged share capital

* The Merger offers substantial benefits for shareholders, customers and
employees:

+ combines two highly complementary businesses to create an operator with
an enhanced presence in the attractive private label convenience foods
category with significant branded positions in Biscuits (Fox's) and
Frozen Pizzas (Goodfella's)

+ provides the ability to drive cost efficiencies and combine
complementary customer bases and provides opportunities to deepen
relationships with key customers

+ cost synergies of approximately 40 million per annum are expected to
be realised within three years

+ provides a stronger credit profile which will help ensure greater
financial and strategic flexibility in future

* Patrick Coveney will be the Chief Executive Officer and Simon Herrick will
be the Chief Financial Officer

* Essenta Foods will have a premium listing and be traded on the main market
of the London Stock Exchange. It is anticipated that Essenta Foods will be
included in the FTSE UK Index Series on completion of the Merger

* Letters of intent in support of the Merger have been received from
shareholders currently holding 30.29% of Greencore's and 11.81% of Northern
Foods' existing issued share capital

* The Merger is expected to complete during the second quarter of 2011