real-time news and commentary for investors
Friday, Oct 4
Is ADM's bid for GrainCorp in trouble?
- Archer Daniels Midland (ADM) will find out whether it has received approval from Australia’s Foreign Investment Review Board for its planned A$3B acquisition of GrainCorp (GRCLF.PK) in about two months, Australia’s treasurer says.
- GrainCorp shares closed today at A$12.35/share, a 6.4% discount to the A$13.20 shareholders would receive under ADM’s buyout offer, perhaps an indicator that investors are skeptical the deal will be completed.
- Sizable deals that have been blocked by Australia’s FIRB in the past include the Singapore Exchange's proposed 2011 A$8.4B takeover of the Australian Stock Exchange and Shell's 2001 attempt to buy Woodside Petroleum for A$10B.
- Separately, Illinois Gov. Pat Quinn says he will veto any legislation with special tax incentives for ADM to keep its global headquarters in the state until legislators approve a fix for the pension crisis.