GrainCorp rebuffs Archer Daniel Midland's $2.77-bn bid
15 Nov 2012
Australian grains handler GrainCorp yesterday rejected a A$2.68 billion ($2.77 billion) takeover bid from US agriculture giant Archer Daniel Midland Co (ADM) , saying that the offer undervalued the company.
The rejection came on the day when the Sydney-based GrainCorp reported a record annual net profit, aided by a bumper harvest.
It reported net profit of A$205 million ($214 million), and announced a dividend of 35 cents per share, bringing the total full-year dividend to 65 cents per share, up from 55 cents a year ago.
In October, ADM launched a $2.77 billion cash bid for Graincorp, as part of the Illinois-based company's plan to expand outside the US. (See: Archer Daniels launches $2.77-bn bid for rival Graincorp)
ADM, which already held a 4.9-per cent stake in Graincorp, had acquired an additional 10 per cent for A$11.75 per share, a few days before tabling the bid.
The offer was subject to several conditions, including exclusivity, due diligence, and a recommendation from the Graincorp board in favour of its bid.
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