05 February 2013 18:56 [Source: ICIS news]
HOUSTON (ICIS)--Archer Daniels Midland (ADM) is currently not talking to Australia's GrainCorp about ADM’s takeover offer, the CEO of the US-based agribusiness major said on Tuesday.
In fact, ADM has not been talking to the Syndey-based grain handling, oils and agricultural company since last December, when GrainCorp rejected ADM's latest offer, CEO Patricia Woertz told analysts during ADM’s second-quarter results conference call.
“There’s really nothing to update, because there has been no further conversation with them since their rejection of our last proposal,” Woertz told an analyst who inquired about the deal.
Woertz did not say whether or when ADM may continue the talks.
GrainCorp in December rejected ADM’s cash bid of Australian dollar (A$) 12.20/share – worth around $3bn ($3bn, €2bn) - as too low. But GrainCorp indicated at the time that it remained open to a higher bid.
ADM first approached GrainCorp in October last year with a non-binding A$11.75/share cash bid, later raised to A$12.20/share.
As of 17 December 2012, ADM held a 19.9% stake in GrainCorp, according to information on GrainCorp's website. ADM’s results for the three months ended 31 December included a $62m gain on its investment in GrainCrop.
GrainCorp’s shares closed at A$12.09/share, down 5 cents, on the Australian Securities Exchange on Tuesday.
($1 = €0.74, $1 = A$0.96)
Additional reporting by Franco Capaldo
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