"He is being mischievous with the truth to imply that TAF will deliver a lower share price than the status quo share valuation process or the new provisions in the Dairy Industry Restructuring Amendment (DIRA) Bill," says O'Connor.
"The Fonterra Blueprint is based on the objective of a well-discovered price for a Fonterra share, which is code for a full-value share as traded by farmers or equivalent to the full value of a unit traded by investors. The equality and fungibility of that price is the objective of TAF.
"It is highly likely that the current share value and the new unit value, once units are traded by investors, will lead to higher share prices, given the economic interest and objectives of investors. This will bring new challenges for both farmers and Fonterra into the future.
"The select committee has changed the legislation to ensure the fair value share price must reflect a price related to the cooperative share, which is currently redeemed by Fonterra and is currently discounted to reflect that limited trading.
O'Connor is concerned in this week leading up to the June 25 vote, farmers will be confused by misleading and contradictory statements.
"I urge farmers to read all the information they have and think carefully about ownership of units by outside investors and the long term implications for their cooperative company of these new interests," says O'Connor.
