Shares of FONTERRA ORD UNIT (ASX: FSF) have entered into a trading halt today after New Zealand police announced a threat to poison infant and other formulas.
So What: FONTERRA ORD UNIT is a fund for shareholders established to provide exposure to the performance of New Zealand dairy group Fonterra Co-operative Group Limited. The Australian-listed fund entered into an immediate trading halt following the New Zealand Securities Exchange's decision to halt trading on all NZX-listed dairy companies.
According to a market release issued by the company, an investigation is underway into a criminal threat relating to the potential poisoning of milk powder as a protest against the government's use of 1080 poison for pest control. Police have reportedly said that letters had been received by the company in November last year. The letters reportedly contained small packages of milk powder which have since tested positive for a concentrated 1080 poison.
While the government has said there are no health risk for consumers and that the chance of a threat being carried out was 'extremely low', Fonterra has also increased its testing and security measures to ensure consumer safety.
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