US/AUS: ADM stands by GrainCorp bid
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.
Companies: Archer Daniels Midland
Archer Daniels Midland is set to table an offer for GrainCorp after completing an agreed period of due diligence on the Australian grain trader....
Archer Daniels Midland has booked a drop in first-quarter profits as higher costs hit the bottom line....
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