THE NEWS WRAP: Tamar Valley Dairy could scoop $5 million from Bulla
Family-owned Tasmanian yoghurt producer Tamar Valley Dairy is considering accepting a $5 million injection from rival Bulla, amidst a cashflow crunch at the Coles, Woolworths, Aldi and Fonterra supplier.
However, Tamar owner Archie Matteo says the Bulla bid, which would see the Victorian dairy company relocate its yoghurt manufacturing to Tamar’s factory in northern Tasmania, is one of four bids his company is considering.
"We are considering all four offers although it may not be necessary; it all depends on what the creditors say," Matteo said.
"We are not desperate; we have just experienced a set of circumstances that depleted our cash reserves for a short time."
Spanish unemployment soars above 27%
The Spanish National Statistics Institute has released new figures showing unemployment has hit a record high 27.16%, with a startling 57.2% of people under 25 now unemployed.
The unemployment figure, up from 26.02% last quarter, has now nearly reached the 27.2% reported by Greece.
The figure comes after Spain’s economy contracted by 1.37% last year, the largest contraction since the 1970s, with a further contraction of between 1% and 1.5% expected for this year.
German government advisor warns euro could be gone within five years
A key German government economic advisor, Kai Konrad, has told the Welt am Sonntag newspaper the euro could collapse within the next five years.
“A concrete period is hard to identify as it depends on so many factors. But five years sounds realistic,” Konrad said.
“No country can pile up debt without running the risk that their investors will pull the plug. It's in each [country's] interests to keep their own debts as small as possible. Where the limit lies has to be individually decided. That depends, among other things, on economic growth and the growth of population.”
The Dow Jones Industrial Average closed up 0.2% to 14700.8. The Aussie dollar is up to US102.91 cents.