Wall St shockwaves travel through ethanol: Updated

Wall St shockwaves are hitting a number of companies in the Ethanol business says Reuters in a report last Wednesday.

The report looks at  Aventine and Verasun and the impact of a capital squeeze and rising corn prices. Management in those firms, and many more, will be working hard over the next few months. Verasun, is, in fact. looking at strategic alternatives, and has retained Morgan Stanley (which is doing the same at the moment, for itself) to help it with the process.

In an 8K filing with the SEC Verasun says.

Based on these assumptions, andexcluding the impact of other factors, we would expect to incura net loss for the third quarter of 2008 in the range of between $63million ($0.40 per share) and $103 million ($0.65 per share).

Pherhaps it could be a partner for one of the big corn dealers?

Hattip to Greentech media

, , , , , , , , ,

Leave a Reply