Viterra confirms takeover talks

By: Michelle Russell - 19 March 2012 17:22

Canadian agribusiness group Viterra said it has begun "exclusive negotiations" on a potential takeover bid.

Viterra has not named who it is in talks with, but reports have suggested that Switzerland-based commodity supplier Glencore is launching a joint bid along with Canadian grain handler Richardson International and farm retailer Agrium.

Last week the company said it had received "expressions of interest" from third parties to acquire it, but that bidders would have to offer at least C$16 per share, valuing Viterra at around C$6.03bn (US$6.08bn).

In an updated statement today, Viterra said the company is considering "a price which is consistent with our previous statement", but warned it could make no assurance of a deal or what price may be offered.

"A further announcement will be made if appropriate", the company said.

Trading of Viterra's shares on the Toronto Stock Exchange was halted pending the company's statement. The company's shares were trading at C$16 at 12:19 EDT today.

Glencore declined to comment on the reports when contacted by just-food.