Lion Nathan says bid for CC-Amatil compelling

By Sonali Paul

MELBOURNE (Reuters) - Lion Nathan Ltd LNN.AX, Australia's second-largest brewer, stood firm on its rebuffed A$7.6 billion ($4.9 billion) bid for soft drinks group Coca-Cola Amatil Ltd (CCL.AX), as it reported a flat second-half profit.

In his first public comments on the offer, Lion Nathan Chief Executive Rob Murray said the roughly 30 percent premium offered in the proposal was compelling, especially in the face of an economic downturn and a volatile share market.

"It's a very brave set of shareholders that would overlook that in the current environment," Murray told reporters at the group's results briefing.

Lion Nathan and its 46 percent owner, Kirin Brewery Co (2503.T), declined to comment on whether they would increase the offer to satisfy Coca-Cola Amatil's 30 percent owner, Coca-Cola Co (KO.N).

Coca-Cola Amatil said on Monday that the bid had material weaknesses and looked cheap compared with other recent deals.

Murray highlighted that the valuation on Lion Nathan's offer exceeded the top valued takeover of a bottler in the past seven years, Coca Cola Enterprises' purchase of Herb Coca-Cola in 2001.

Lion Nathan's shares fell 3 percent to A$8.38 in line with the broader market .AXJO, which it has heavily outperformed so far this year.

Coca-Cola Amatil's shares fell 2 percent to A$9.12, trading 10 percent below the implied value of the proposed cash and scrip offer, reflecting investor doubts the deal will go ahead.