US/AUS: ADM stands by GrainCorp bid
By Dean Best | 16 November 2012
 |
ADM says GrainCorp takeover bid "attractive" |
Archer Daniels Midland has insisted its takeover bid for GrainCorp is "attractive" after the Australian agribusiness insisted it under-valued the company.
GrainCorp chief executive Alison Watkins said it valued the business more than ADM, which tabled a A$2.7bn offer last month.
"We've looked at the underlying earnings for GrainCorp, the growth initiatives we are confident of delivering, and formed a view on fundamental value which is materially different from the ADM proposal," Watkins was quoted as saying by The Financial Times yesterday (14 November).
In a statement, ADM backed its bid. "We note GrainCorp's response today to our proposal. On October 19, we approached GrainCorp's board with a proposal that represented a significant premium to the prevailing GrainCorp share price at the time of our approach. We believe it remains an attractive proposal
GrainCorp yesterday reported a 19% increase in annual net earnings. EBITDA grew 18%.
It also set a target of increasing EBITDA by A$110m in the next four years.
Sectors: Commodities & ingredients, Financials, Mergers & acquisitions
Companies: Archer Daniels Midland
View next/previous articles
16 Nov 2012 -
16 Nov 2012 -
Currently reading -
US/AUS: ADM stands by GrainCorp bid
16 Nov 2012 -
16 Nov 2012 -
Related research
Oil Crops in Argentina industry profile provides top-line qualitative and quantitative summary information including: market size (value and volume 2007-11, and forecast to 2016). The profile also contains descriptions of the leading players includin...
Cereal Crops in Brazil industry profile provides top-line qualitative and quantitative summary information including: market size (value and volume 2007-11, and forecast to 2016). The profile also contains descriptions of the leading players includin...
Oil Crops in Brazil industry profile provides top-line qualitative and quantitative summary information including: market size (value and volume 2007-11, and forecast to 2016). The profile also contains descriptions of the leading players including k...
Related articles
AUS: GrainCorp backs sweetened ADM takeover bid
The board of Australian grain trader GrainCorp has backed an improved takeover bid from US agri-giant Archer Daniels Midland, which values the company at around A$2.6bn (US$2.7bn)
There are currently no comments on this article
Be the first to comment on this article