Dear Shareholders and Suppliers
We've had a lot of good feedback on the proposed changes to our capital structure and it is very clear that we will need to spend much more time in consultation and discussion before any final deciding vote in 2010.
Consequently your Board has decided that it will not proceed with the preliminary vote in May to change Fonterra's structure into two entities. While we still believe there would be benefits in road testing the two company structure, it is not essential at this time.
See... Full chairman's letter (PDF)